What conditions related to defaults and obligations must be met before assigning a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
That, as of the date of the assignment, you have cured any existing defaults under any provisions of this Agreement or any other agreement or arrangement with us or our affiliates, and have fully satisfied in all respects all of your accrued and/or then-current monetary and other obligations to us and our affiliates (under this Agreement or otherwise), all sources of financing of your franchised Business and all material sources of supply of your franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must meet specific conditions related to defaults and obligations before they can assign their franchise to a third party. Specifically, as of the date of the assignment, the franchisee must have cured any existing defaults under any provision of the Franchise Agreement or any other agreement with Bonchon or its affiliates.
Furthermore, the franchisee must have fully satisfied all accrued and current monetary and other obligations to Bonchon and its affiliates. This includes obligations related to the financing of the franchised business and all material sources of supply for the franchised business.
These conditions ensure that the Bonchon franchise is transferred in good standing, without any outstanding issues or liabilities that could negatively impact the brand or the new franchisee. This is a fairly standard practice in franchising, as franchisors want to maintain the integrity of their system and ensure that new franchisees start on a solid foundation.