What is the deadline for a Bonchon franchisee to provide written evidence of the acquiring party's ratification and assumption of the Pepsi-Cola agreement following an acquisition?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event that a third party acquires Participating Franchisee or all or a group of the Outlets, or if Participating Franchisee is acquired or merges with a third party, Participating Franchisee will, in connection with such transaction, cause the acquiring party/merged entity, in writing, to ratify this Agreement and assume all of the obligations of Participating Franchisee hereunder. In the event that Participating Franchisee does not deliver written evidence of such ratification and assumption of this Agreement by the acquiring party/merged entity within 10 days following the closing of the transaction, Pepsi-Cola may, at its option, terminate this Agreement effective immediately and Participating Franchisee will pay to Pepsi-Cola all sums specified in Section 8.2 above with respect to all affected Outlets.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a Bonchon franchisee must provide written evidence of the acquiring party's ratification and assumption of the Pepsi-Cola agreement within 10 days following the closing of the transaction. This requirement is triggered if a third party acquires the franchisee or their outlets, or if the franchisee merges with a third party.
If the franchisee fails to provide this written evidence within the specified timeframe, Pepsi-Cola has the option to terminate the agreement immediately. Additionally, the franchisee will be required to pay Pepsi-Cola all sums specified in Section 8.2 of the agreement with respect to all affected outlets.
This clause ensures that the Pepsi-Cola agreement remains in effect even if the Bonchon franchise changes ownership. It protects Pepsi-Cola's interests by requiring the new owner to formally agree to the terms of the existing agreement. For a prospective Bonchon franchisee, this means understanding the importance of this timeline during any potential sale or merger to avoid potential penalties or termination of the Pepsi-Cola agreement.