What constitutes a failure to comply with laws or regulations that could lead to termination of the Bonchon franchise agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
nd/or trade dress solely in the manner and for the purposes directed by us in this Agreement, our Manuals or otherwise.
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- You violate the restrictions pertaining to advertising or do not participate in the programs related to advertising and sales promotion set forth in Section 8.23 and Article 10 of this Agreement.
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- You do not indemnify us and/or one of the Indemnitees as required by this Agreement.
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- By act or omission, you permit a continued violation in connection with the operation of the franchised Business of any law, ordinance, rule or regulation of a governmental agency, in the absence of a good faith dispute over its application or legality and without promptly resorting to an appropriate administrative or judicial forum for relief.
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- You fail to obtain or maintain any required permit, certificate or other governmental approval required either by this Agreement or applicable law, rule or regulation.
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Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee's failure to comply with federal, state, or local laws and regulations applicable to the operation of the franchised business can lead to the termination of the franchise agreement. Specifically, if a Bonchon franchisee does not comply with such laws or regulations for a period of 15 days after receiving notification of non-compliance from Bonchon or any governmental authority, it can result in termination.
Additionally, the franchise agreement can be terminated if a Bonchon franchisee permits a continued violation of any law, ordinance, rule, or regulation of a governmental agency in connection with the operation of the franchised business. This is applicable if there is no good faith dispute over the law's application or legality, and the franchisee does not promptly seek relief through an appropriate administrative or judicial forum. Furthermore, failure to obtain or maintain any required permit, certificate, or other governmental approval required by the agreement or applicable law, rule, or regulation can also lead to termination.
Moreover, if a Bonchon franchisee employs an individual who is not eligible for employment in the United States under any federal, state, local, or other law, rule, or regulation, this can also result in the termination of the franchise agreement. These stipulations highlight the importance of franchisees maintaining full legal compliance in all aspects of their business operations to avoid potential termination of their franchise agreement with Bonchon.