When must a Bonchon franchisee designate an Area Manager in writing to Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Prior to you (or your affiliate) opening your third Bonchon Business, you must designate in writing to us an "Area Manager" who will have the obligation to oversee operations of each Bonchon Restaurant that you and/or your affiliates own and operate. Prior to engaging the services of an Area Manager, you must identify such individual to us. The Area Manager must be certified to manage multi-unit operations. Your Area Manager must also have first attended, received and hold a current Bonchon approved nationally accredited food manager certification in addition to any safe food handling courses required by the local municipality in which the subject Restaurant is located. Once your Area Manager has obtained its Bonchon approved nationally accredited food manager certification, then your Area Manager must attend and successfully complete our Initial Training Program and such additional training that we may require (as described in the first Franchise Agreement we sign for your first Bonchon Business, attached hereto as Exhibit B) prior to the opening of your third Bonchon Business. Your Area Manager may not hold any other position in your organization or business entity or in any of your Bonchon Businesses or Restaurants while he/she is serving as your Area Manager. The requirement to designate an Area Manager prior to the opening of your third Bonchon Business applies whether the development of your third Bonchon Business is (i) pursuant to the Development Schedule in Section 6.01 above, (ii) you (or your affiliate) entering into separate unrelated unit franchise agreements, (iii) your (or your affiliate's) acquisition of existing Bonchon Businesses or (iv) some combination of the foregoing.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must designate an Area Manager in writing to Bonchon prior to opening their third Bonchon Business. This Area Manager will be responsible for overseeing the operations of all Bonchon Restaurants owned and operated by the franchisee and their affiliates.
Before engaging the services of an Area Manager, the franchisee must identify the individual to Bonchon. The Area Manager must be certified to manage multi-unit operations and must also have a Bonchon-approved nationally accredited food manager certification, in addition to any safe food handling courses required by the local municipality where the restaurant is located. Once certified, the Area Manager must attend and successfully complete Bonchon's Initial Training Program and any additional training that Bonchon may require.
The requirement to designate an Area Manager applies whether the development of the third Bonchon Business is (i) pursuant to the Development Schedule in Section 6.01 above, (ii) you (or your affiliate) entering into separate unrelated unit franchise agreements, (iii) your (or your affiliate's) acquisition of existing Bonchon Businesses or (iv) some combination of the foregoing. The Area Manager cannot hold any other position within the franchisee's organization or in any of their Bonchon businesses while serving as Area Manager.
If the Area Manager dies, becomes disabled, or terminates employment, the franchisee must immediately notify Bonchon. They must then designate an interim or acting Area Manager and obtain Bonchon's written approval. A successor Area Manager must be designated no later than 90 days following the previous Area Manager's departure. This successor must also be certified in multi-unit operations, obtain the necessary food manager certification, and complete Bonchon's Initial Training Program.