What documents related to the business's formation, organization, and governance must a Bonchon franchisee furnish to the franchisor?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, limited liability company, limited partnership or any other type of business entity, you must comply with the following requirements (which will also apply to any assignee of this Agreement which is a business entity):
- A. Furnish us with all of your formation, organizational and governing documents; a schedule of all current owners (indicating as to each its percentage ownership interest) in the form annexed hereto as Exhibit J; any shareholder, partnership, membership, buy/sell or equivalent agreements and documents; and, a list of all of your officers, directors and managers (as applicable).
- B. Unless we otherwise consent in writing, your business entity's formation and governing documents must provide that its activities will be confined exclusively to the operation of the franchised Business.
- C. You must promptly notify us in writing of any change in any of the information specified, or in any document referred to, herein.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee is a corporation, limited liability company, limited partnership, or any other type of business entity, they must provide Bonchon with specific documents related to the business's structure. These include all formation, organizational, and governing documents. Additionally, the franchisee must furnish a schedule of all current owners, detailing each owner's percentage ownership interest, using the form annexed as Exhibit J.
The franchisee must also supply any shareholder, partnership, membership, buy/sell, or equivalent agreements and documents. A list of all officers, directors, and managers, as applicable, is also required. Bonchon stipulates that, unless they provide written consent otherwise, the business entity's formation and governing documents must ensure that its activities are exclusively confined to operating the franchised Bonchon business.
Furthermore, the franchisee is obligated to promptly notify Bonchon in writing of any changes to the information provided in these documents. This requirement ensures that Bonchon maintains up-to-date records regarding the ownership, management, and operational scope of its franchisees, allowing for better oversight and compliance with the franchise agreement.