What conditions must a Bonchon franchisee meet to receive approval for relocation?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not relocate the Restaurant without our previous written approval. You must pay us a Relocation Fee equal to 25% of our then-current Initial Franchise Fee, plus reimburse us for any reasonable costs we incur in considering your request, provided, however, you will not have to pay us a Relocation Fee or reimburse us for our costs in considering your request to relocate a Remote Kitchen Restaurant when such relocation occurs upon the natural expiration of the lease for your Restaurant Location. For the avoidance of doubt, you will be required to pay us a Relocation Fee and reimburse us for our costs in considering your request to relocate your Remote Kitchen Restaurant Location, if the lease for your Restaurant Location is terminated due to your default. We will grant approval if you are in compliance with the Franchise Agreement, you have paid all money owed to us and our affiliates, the proposed location meets our site selection criteria, and you comply with the lease requirements in the Franchise Agreement. We may, if we wish, inspect your proposed new location.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee needs prior written approval from Bonchon to relocate their restaurant. To get this approval, the franchisee must meet several conditions. First, they need to be in compliance with the Franchise Agreement. Second, they must have paid all money owed to Bonchon and its affiliates. Third, the proposed new location must meet Bonchon's site selection criteria. Finally, the franchisee must comply with the lease requirements outlined in the Franchise Agreement. Bonchon also retains the right to inspect the proposed new location.
Relocating a Bonchon restaurant involves certain fees. The franchisee must pay Bonchon a Relocation Fee equal to 25% of the then-current Initial Franchise Fee. Additionally, the franchisee must reimburse Bonchon for any reasonable costs incurred while considering the relocation request. However, there is an exception for Remote Kitchen Restaurants. If a Remote Kitchen Restaurant is being relocated upon the natural expiration of its lease, the franchisee does not have to pay the Relocation Fee or reimburse Bonchon's costs. This exception does not apply if the lease is terminated due to the franchisee's default; in that case, the Relocation Fee and cost reimbursement are required.
These relocation terms are fairly standard in the franchise industry, as franchisors typically want to maintain control over brand consistency and site selection. The relocation fee is in place to compensate Bonchon for their time and resources in evaluating the new location and ensuring it meets their standards. The exception for Remote Kitchen Restaurants upon lease expiration may provide some flexibility for franchisees operating these smaller-format locations. Prospective franchisees should carefully review the Franchise Agreement to understand all the terms and conditions related to relocation, including the specific site selection criteria and lease requirements.