What are the consequences of attempting to assign a Bonchon franchise in violation of Article 14?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Any actual or attempted assignment, transfer or sale of this Agreement, the franchise conveyed hereunder, the franchised Business, your franchised Bonchon Restaurant, any ownership interest in you (if you are a business entity), any of the other interests, rights or privileges identified in the preceding paragraph, or any interest in any of these, in violation of the terms of this Article 14, will be null, void and of no effect, and will be a material and incurable breach of this Agreement which, unless we waive to the breach, will entitle us to terminate this Agreement immediately upon 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, any attempt to assign, transfer, or sell the Franchise Agreement, the franchised business, or any ownership interest in violation of Article 14 will be considered null and void. This action constitutes a material and incurable breach of the agreement.
Bonchon has the right to terminate the Franchise Agreement immediately upon notifying the franchisee, without providing an opportunity to cure the breach. This means the franchisee would lose all rights to operate the Bonchon restaurant.
This provision underscores the importance Bonchon places on the personal skills, qualifications, and trust they place in their franchisees. It also highlights the need for franchisees to adhere strictly to the terms outlined in Article 14 regarding assignments, sales, or transfers of the franchise.