What is the deadline for designating a successor or acting Operating Principal for a Bonchon franchise after the previous one's death, disability, or termination?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
After an Operating Principal's death, disability or termination of employment, you must immediately (but no later than 5 days from the occurrence of such event) notify us, and you must designate a successor or acting Operating Principal within 10 days from the occurrence of such event.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 69–71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if an Operating Principal dies, becomes disabled, or is terminated, the franchisee must immediately notify Bonchon of the event, but no later than 5 days after it occurs. Furthermore, the franchisee is required to designate a successor or acting Operating Principal within 10 days from the date of the death, disability, or termination.
This requirement ensures that the Bonchon franchise maintains consistent management and operational oversight. The Operating Principal is the key point of contact between the franchisee and Bonchon, possessing complete decision-making authority. Therefore, a quick replacement is essential to avoid any disruption in communication or business operations.
For a prospective Bonchon franchisee, this means having a plan in place for potential succession. Identifying and training potential successors or having a contingency plan can help ensure compliance with this requirement and maintain the smooth operation of the franchise. Bonchon's approval is required for any Operating Principal, so the selection process should consider this factor as well.