What constitutes a willful misrepresentation or failure to disclose material information to a governmental authority regarding Bonchon obligations or operations that could lead to termination?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You make a willful misrepresentation or do not make a material disclosure required by any governmental authority regarding any matter involving or affecting your obligations under this Agreement or the operations of the Bonchon Businesses.
You make a willful misrepresentation or do not make a material disclosure required by any governmental authority regarding any matter involving or affecting the operations of your franchised Bonchon Business and Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, making a willful misrepresentation or failing to disclose required material information to a governmental authority regarding any matter involving or affecting your obligations under the Franchise Agreement or the operations of the Bonchon Businesses can lead to termination of the agreement. This applies to both franchised Bonchon Businesses and Restaurants.
In practical terms, this means a Bonchon franchisee must be truthful and transparent in all dealings with government entities. This includes, but is not limited to, providing accurate information on permits, licenses, tax filings, and compliance reports. Any intentional false statement or omission of important details could be grounds for Bonchon to terminate the franchise agreement.
This provision underscores the importance of adhering to all applicable laws and regulations. Franchisees should consult with legal and accounting professionals to ensure they fully understand their obligations and are accurately fulfilling all reporting requirements. The risk of termination for non-compliance highlights the need for meticulous record-keeping and a commitment to ethical business practices.