After the Bonchon Franchise Agreement expires or terminates, does Bonchon retain its rights against the franchisee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The expiration or termination of this Agreement will be without prejudice to our rights against you, and will not relieve you of any of your obligations to us at the time of expiration or termination, or terminate your obligations which by their nature survive the expiration or termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the expiration or termination of the Franchise Agreement does not eliminate Bonchon's rights against the franchisee. Bonchon retains the rights it has against the franchisee, and the franchisee remains obligated to Bonchon even after the agreement ends. These obligations that survive termination or expiration include any existing debts or duties the franchisee owes Bonchon.
Specifically, the franchisee's obligations to Bonchon at the time of expiration or termination remain in effect. This means that if the franchisee owes Bonchon any money, fees, or has any other outstanding responsibilities, those obligations continue even after the Franchise Agreement is no longer active. Additionally, any obligations that naturally extend beyond the agreement's term, such as confidentiality or non-compete clauses, also remain in force.
This clause ensures that Bonchon can still pursue legal remedies for any breaches or violations that occurred during the term of the agreement, and that the franchisee cannot simply avoid their responsibilities by allowing the agreement to expire or by terminating it prematurely. Prospective franchisees should carefully review the sections of the Franchise Agreement that outline these continuing obligations to fully understand their potential liabilities even after the franchise relationship ends.