What is a 'Crisis Management Event' according to the Bonchon franchise agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
D. "Crisis Management Event" means any event or incident that:
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- occurs at or about, or impacts, your Bonchon Restaurant that has or may cause real or perceived harm or injury to member or employees, such as equipment malfunction, food contamination or other food safety issue, matters affecting the health, safety or well-being of any member, employee or the public at the Restaurant, epidemics, pandemics or other contagious diseases, natural disasters, criminal or terrorist acts, shootings, or any other circumstances which may have the actual or potential ability to damage the System, the Proprietary Marks, or the image or reputation of us or our affiliates; and/or
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- occurs at or about, or impacts (or has the ability to impact regardless of whether such impact so occurs) one or more Bonchon Restaurant that (x) has or may cause real or perceived harm or injury to the System, the Proprietary Marks, or the image or reputation of us or our affiliates or (y) has or may cause harm or injury to members, employees or the public, including, but not limited to, incidents or events relating to equipment malfunction, food contamination or other food safety issue, matters affecting the health, safety or well-being of any member, employee or the public at the Restaurant, epidemics, pandemics or other contagious diseases, natural disasters, criminal or terrorist acts, shootings, or any other circumstances which may damage the System, the Proprietary Marks, or the image or reputation of us or our affiliates; and/or
- results in any governmental action, mandate, advisory opinion, declaration of emergency or otherwise that may impact, or may require the suspension, termination, or modification of operations of, your Bonchon Restaurant.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a 'Crisis Management Event' is defined broadly, encompassing any event or incident that occurs at or impacts a Bonchon Restaurant and may cause harm or injury to members or employees. This includes equipment malfunction, food contamination, food safety issues, health and safety concerns, epidemics, pandemics, natural disasters, criminal or terrorist acts, shootings, or any other circumstances that could damage the Bonchon system, proprietary marks, or the reputation of Bonchon or its affiliates.
The definition also extends to events impacting one or more Bonchon Restaurants that could harm the system's image or cause injury to members, employees, or the public. Furthermore, any governmental action, mandate, advisory opinion, or declaration of emergency that may require the suspension, termination, or modification of a Bonchon Restaurant's operations also qualifies as a Crisis Management Event.
This definition is important for prospective franchisees because it outlines the types of situations where Bonchon may intervene and direct the management of the crisis. Bonchon retains the right to manage communications, suspend operations, and modify policies in response to such events. Franchisees are required to cooperate fully with Bonchon's directives during a Crisis Management Event and cannot resume operations without Bonchon's express written consent. Franchisees may also be required to reimburse Bonchon for costs incurred in managing the crisis if the event arises from the franchisee's actions or relates solely to their restaurant.