When Bonchon exercises its right of first refusal, what is the latest closing date?

According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon decides to exercise its right of first refusal to purchase your franchise, the closing date depends on several factors. The closing must occur within the latest of these timeframes: 60 days following your receipt of Bonchon's notice of exercise, the closing period specified in your original offer, or a longer period if necessary for Bonchon to conduct due diligence.

This means that if you, as a franchisee, receive notice that Bonchon will exercise its right of first refusal, you need to be prepared for the sale to potentially close within 60 days. However, if your original offer to a third party included a closing period longer than 60 days, that longer period would apply. Additionally, Bonchon may require more time to perform due diligence, which could further extend the closing date.

For a prospective franchisee, this clause highlights the importance of understanding the implications of Bonchon's right of first refusal. While it provides Bonchon with the option to purchase the franchise, it also introduces potential complexities and uncertainties regarding the timeline for a sale. Franchisees should factor these considerations into their long-term business plans and exit strategies.

It is important to note that the FDD excerpt does not specify what 'longer period' is necessary to conduct due diligence. A prospective franchisee should clarify with Bonchon what factors might cause a delay in closing due to due diligence and what the typical length of such an extension might be.