Does the Bonchon franchise agreement require parties to execute further documents to fulfill the agreement's purpose?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
authorizations required by any federal, state or local, rule or regulation to operate the franchised Business. If applicable law enables you to transfer or assign any of the aforementioned permits, licenses and/or authorizations which you possess to the assignee, then you agree to do so immediately following our execution of the assignee's new Franchise Agreement.
- J. Notwithstanding the foregoing, you understand and agree that you will remain fully liable and responsible for all of your obligations to us and our affiliates under this Agreement which arose in connection with the operation of your franchised Business prior to the
effective date of the assignee's new Franchise Agreement (specifically including your obligation to indemnify us and the other Indemnitees identified in Section 8.11) and you agree to execute any and all documents we reasonably request to further evidence such liability.
- K. That if the proposed assignee is a business entity, we have the absolute right to require any owners or other parties having an interest in the proposed assignee or the Location to execute the Guarantee substantially in the form of Exhibit H.
- L.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the franchise agreement requires franchisees to execute additional documents under certain circumstances. Specifically, if a franchisee seeks to assign their franchise to another party, the assignee must execute a new Bonchon Franchise Agreement, along with all other agreements that Bonchon requires of new franchisees. These terms and conditions in the new agreement may differ significantly from the original agreement.
Furthermore, if the franchisee is a business entity, Bonchon retains the right to demand that owners or other parties with an interest in the assignee or the location execute a guarantee. This guarantee would be substantially in the form outlined in Exhibit H of the franchise agreement. Additionally, the franchisee agrees to execute any and all documents Bonchon reasonably requests to further evidence liability for obligations arising from the operation of the franchised business before the assignee's new franchise agreement becomes effective.
These provisions ensure that Bonchon maintains control over who operates its franchises and that all parties involved are bound by the necessary agreements and guarantees. This is a fairly standard practice in franchising, as franchisors need to protect their brand and ensure consistent operations across all locations. Prospective franchisees should carefully review Exhibit H and understand the potential implications of these additional documents and guarantees before entering into a franchise agreement with Bonchon.