What is the consequence if a Bonchon franchisee fails to deliver required notices regarding site selection in a timely fashion?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to perform any of the acts or fail to deliver any of the notices required pursuant to the provisions of this Section 7 in a timely fashion, this will be a material and incurable breach of this Agreement which, unless we waive the breach, will entitle us to terminate this Agreement immediately on notice to you, with no opportunity to cure.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee fails to deliver required notices or perform required actions regarding site selection in a timely manner, it constitutes a material and incurable breach of the agreement. Unless Bonchon waives the breach, Bonchon is entitled to terminate the agreement immediately upon notice to the franchisee, without providing an opportunity to cure the breach.
This provision underscores the critical importance Bonchon places on timely compliance with site selection procedures. Franchisees must adhere strictly to the timelines and notification requirements outlined in Section 7 of the agreement. Failure to do so can lead to immediate termination of the franchise agreement, representing a significant risk for franchisees who do not meticulously follow the prescribed processes.
Site selection is a crucial step in establishing a Bonchon restaurant, and Bonchon retains significant control over this process, including the approval of the restaurant location and lease terms. The strict enforcement of notification and performance deadlines reflects Bonchon's need to maintain uniformity and quality across all franchise locations. This policy is stricter than some franchise agreements, which may allow a period to cure a breach before termination.