For a Bonchon franchise, what is the requirement regarding the business entity's standing and qualification in relevant jurisdictions?

According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee is a business entity, it must be in good standing and qualified to conduct business in every state and political/governmental subdivision that has jurisdiction over the franchised Bonchon business. This ensures that the Bonchon franchise operates legally and meets all regulatory requirements in its area.

This requirement means a prospective Bonchon franchisee must ensure their business entity is properly registered and compliant with all applicable laws and regulations in the relevant jurisdictions. This includes maintaining all necessary licenses, permits, and registrations, as well as adhering to state and local business regulations. Failure to comply could result in legal issues, fines, or even the inability to operate the franchise.

Bonchon also requires that if the franchisee is a business entity, it must possess the necessary power and authority to execute, deliver, and perform the Franchise Agreement. Furthermore, all essential business entity proceedings must be duly undertaken to authorize the execution, delivery, and performance of the Agreement. This stipulation ensures that the business entity is fully capable and authorized to enter into and fulfill the obligations outlined in the Franchise Agreement, protecting Bonchon's interests and ensuring a smooth business relationship.