For a Bonchon franchise, what specific information is required regarding each owner's interest, position, and ownership percentage in the franchisee business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are a corporation, limited liability company, limited partnership or any other type of business entity, you must comply with the following requirements (which will also apply to any assignee of this Agreement which is a business entity):
- A. Furnish us with all of your formation, organizational and governing documents; a schedule of all current owners (indicating as to each its percentage ownership interest) in the form annexed hereto as Exhibit J; any shareholder, partnership, membership, buy/sell or equivalent agreements and documents; and, a list of all of your officers, directors and managers (as applicable).
- B. Unless we otherwise consent in writing, your business entity's formation and governing documents must provide that its activities will be confined exclusively to the operation of the franchised Business.
- C. You must promptly notify us in writing of any change in any of the information specified, or in any document referred to, herein.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if the franchisee is a business entity, Bonchon requires specific information about the owners. Bonchon requires franchisees to furnish formation, organizational, and governing documents, along with shareholder, partnership, membership, or equivalent agreements. Additionally, Bonchon requires a list of all officers, directors, and managers, as applicable.
Bonchon also requires a schedule of all current owners, indicating each owner's percentage ownership interest, using the form annexed as Exhibit J. Franchisees must promptly notify Bonchon in writing of any changes to this information or the documents provided.
This level of detail allows Bonchon to maintain oversight and control over the franchise ownership and management structure. It ensures that Bonchon is aware of who is involved in the business and their respective stakes, which is crucial for maintaining brand standards and operational consistency. Prospective franchisees should be prepared to provide this documentation and keep it updated throughout the term of the franchise agreement.