For Bonchon, what is the 'Effective Date' in relation to the service agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS AGREEMENT is entered into between BONCHON FRANCHISE LLC, a New York limited liability company with its principal office at 15660 North Dallas Parkway, Suite 1150, Dallas, TX 75248 ("we," "us," "our" or "Franchisor") and [FRANCHISEE], a [STATE] [TYPE OF BUSINESS ENTITY] whose principal address is [ADDRESS] ("you," "your" or "Franchisee"), as of the date signed by us and set forth opposite our signature on this Agreement (the "Effective Date").
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Effective Date is the date the franchise agreement is signed by Bonchon. The agreement specifies that it is entered into between Bonchon Franchise LLC and the franchisee as of the date signed by Bonchon. This date is set forth opposite Bonchon's signature on the agreement and is referred to as the "Effective Date."
Several critical deadlines and obligations for the franchisee are tied to this Effective Date. For instance, the franchisee must select a restaurant location and receive Bonchon's written approval within 90 days of the Effective Date (or 60 days for Remote Kitchen Restaurants). Additionally, the franchisee needs to sign a lease approved by Bonchon (or provide proof of ownership/executed contract of sale) within 120 days of the Effective Date (90 days for Remote Kitchen Restaurants). Failure to meet these deadlines can result in a breach of the agreement and potential termination by Bonchon.
The franchisee is also required to open their Bonchon restaurant to the public within 300 days of the Effective Date, or by the Scheduled Opening Date specified in Exhibit A, whichever comes first (210 days for Remote Kitchen Restaurants). Failure to open the restaurant within this timeframe can lead to termination of the agreement without an opportunity to cure the breach. Therefore, the Effective Date serves as a crucial starting point for measuring the franchisee's compliance with key milestones and obligations under the franchise agreement.