What are some examples of 'good cause' that would allow Bonchon to refuse a transfer of ownership of a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Good cause shall include, but is not limited to
(i) The failure of the proposed transferee to meet the Franchisor's then current reasonable qualifications or standards.
(ii) The fact that the proposed transferee is a competitor of the Franchisor or subfranchisor.
(iii) The unwillingness of the proposed transferee to agree in writing to comply with all lawful obligations.
- (iv) The failure of the franchisee or proposed transferee to pay an sums owing to the Franchisor or to cure any default in the franchise agreement existing at the time of the proposed transfer.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has the right to deny a transfer of ownership for 'good cause.' This includes several specific scenarios that protect Bonchon's interests and brand standards.
For instance, Bonchon can refuse a transfer if the proposed new owner does not meet Bonchon's current qualifications or standards. This ensures that all franchisees maintain a consistent level of competence and uphold the brand's reputation. Bonchon can also block a transfer if the potential new owner is a competitor, preventing conflicts of interest and protecting Bonchon's market position.
Additionally, Bonchon can deny a transfer if the proposed new owner is unwilling to agree in writing to comply with all lawful obligations. This ensures that the new franchisee is committed to following the franchise agreement and all applicable laws. Finally, Bonchon can refuse a transfer if either the current franchisee or the proposed new owner has outstanding payments due to Bonchon or has failed to correct any existing defaults in the franchise agreement. This protects Bonchon's financial interests and ensures that all franchisees are in good standing.