factual

What constitutes 'force majeure' that would excuse a Bonchon restaurant from operating?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

You do not open your Bonchon Restaurant for business within 300 days after the Effective Date of this Agreement or on or before the Scheduled Opening Date, whichever is earlier; cease operating the franchised Business; abandon the franchise relationship established under this Agreement; or, fail to operate your Bonchon Restaurant for two consecutive days, or three individual days within a twelve month period, during which you are required to operate it under this Agreement, unless your failure to operate is due to force majeure (as defined in Section 20.01).

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

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, a failure to operate a Bonchon restaurant for two consecutive days, or three individual days within a twelve-month period, during which operation is required under the Franchise Agreement, can be excused if the failure is due to force majeure. The FDD refers to Section 20.01 for the definition of force majeure. However, the provided excerpts do not include the content of Section 20.01, so the specific events that constitute force majeure are not detailed here.

Without the specific definition of 'force majeure' from Section 20.01, it is unclear what events Bonchon would consider as valid reasons for temporarily ceasing operations. Typically, 'force majeure' clauses in franchise agreements cover unforeseeable events such as natural disasters (e.g., hurricanes, earthquakes, floods), war, terrorism, government regulations, or widespread utility outages. These events must be beyond the franchisee's control and make it impossible or illegal to operate the business.

A prospective Bonchon franchisee should carefully review Section 20.01 of the Franchise Agreement to understand what events would excuse a temporary closure. It is important to understand the scope of this clause, as unexcused closures can lead to termination of the franchise agreement. Franchisees should also inquire about Bonchon's past practices in applying the 'force majeure' clause to understand how it has been interpreted in real-world situations.

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.