factual

What is the consequence if Bonchon does not respond within the allotted timeframe to a franchisee's request to use an alternate general contractor for refurbishment?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

We have the right to require you once during the Initial Term of this Agreement and each Successor Term, at your sole expense, to update, remodel, refurbish, renovate, modify or redesign your Bonchon Dine-In, Fast Casual and/or Delivery and Carryout Only Restaurant so that it reflects our then-current standards. You will be required to use the general contractor that we designate to

refurbish your Restaurant. If you would like to use an alternative general contractor, then you must submit to us (i) (for our approval) the name of your proposed general contractor and any other information that we may require to assess whether your proposed architect meets our then-current standards and specifications; and (ii) the General Contractor Evaluation Fee. The General Contractor Evaluation Fee is payable at the time you submit your request to use an alternate general contractor and is nonrefundable. Bonchon will review and communicate its decision as to whether your request is approved or rejected within three (3) weeks of the date that you submit all information that we need to evaluate your proposed general contractor. If we do not respond to your request in the allotted timeframe, then you are prohibited from using the proposed general contractor.

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee wants to use an alternative general contractor for refurbishment, they must submit the contractor's name and any other required information to Bonchon for approval, along with the General Contractor Evaluation Fee. Bonchon will then review the submission and communicate their decision within three weeks.

However, if Bonchon fails to respond within this three-week timeframe, the franchisee is prohibited from using the proposed alternative general contractor. This means the franchisee would be required to use the general contractor designated by Bonchon for the refurbishment.

This policy ensures Bonchon maintains control over the quality and standards of its restaurants, even during refurbishments. While franchisees can request an alternative contractor, Bonchon retains the final decision and can effectively deny the request by not responding within the specified timeframe. This could potentially increase costs or limit the franchisee's choice of contractors.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.