Before a Bonchon franchise assignment, what training and certifications must the transferee or operating principal complete, and who pays for it?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
t contract. | | | | s. | | | | You must arrange an inspection of the Bonchon Restaurant prior to |
| Provision | Section in Franchise Agreement* | Summary |
|---|---|---|
| the transfer and pay our On-site Inspection Upon Transfer Fee. Either you or the transferee must, at your/its expense, upgrade the Bonchon Restaurant to conform with then-current standards and specifications within the time we reasonably specify. t. You must pay us a transfer fee of $15,000 or such greater amount as is necessary to reimburse us for our reasonable costs and expenses associated with the application for transfer. Notwithstanding the foregoing, there will be no transfer fee if the assignee is a member of your immediate family. \nu. You must correct any existing deficiencies of the Restaurant of which we have notified you. (Subject to state law.) | ||
| n. Our right of first | Section 14.06 | We can match any offer for your Business. (Subject to state law.) |
| refusal to purchase | ||
| your business | ||
| o. Our option to purchase your business | Section 19.01 | We have the option to buy your franchised Business's assets upon termination or expiration. (Subject to state law.) |
| p. Your death or disability | Section 14.05 | On your death or disability your rights pass to your "Estate". Your Estate may continue operating the Business if it provides an acceptable Operating Principal and General Manager. This Operating Principal must successfully complete our next Initial Training Program or Partner Training Program (as applicable) and assume full-time operation of the franchise within 1 month of your death or disability. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, in the event of death or disability, the Estate may continue to operate the Bonchon business if they provide an acceptable Operating Principal and General Manager. This Operating Principal must successfully complete Bonchon's next Initial Training Program or Partner Training Program (as applicable) and assume full-time operation of the franchise within 1 month of death or disability.
If the Estate does not provide an acceptable Operating Principal, Bonchon has the option to operate the business from the date of death or disability until an Operating Principal assumes full-time control, but they are not required to do so. Alternatively, the Estate may sell the franchise, provided they meet the requirements for transfers.
The FDD states that the franchisee or the transferee is responsible for upgrading the Bonchon Restaurant to conform with then-current standards and specifications within a reasonable time specified by Bonchon. The franchisee must also pay Bonchon a transfer fee of $15,000 or such greater amount as is necessary to reimburse Bonchon for its reasonable costs and expenses associated with the application for transfer. However, this fee is waived if the assignee is a member of the immediate family.