As a Bonchon franchisee, if my business entity's information changes, what is my obligation?
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 you operate as a business entity, such as a corporation or LLC, you must promptly inform Bonchon in writing about any changes to the information you previously provided. This includes changes to your formation, organizational, and governing documents.
Specifically, you need to update Bonchon on any changes to the schedule of current owners and their ownership percentages (as detailed in Exhibit J), any shareholder, partnership, membership, or buy/sell agreements, and the list of officers, directors, and managers. This requirement ensures Bonchon maintains current records and is aware of any shifts in control or ownership within your franchise.
This obligation is part of Section 8.18, which outlines the business entity requirements and record-keeping responsibilities for Bonchon franchisees. Failing to comply with this notification requirement could potentially lead to a breach of the franchise agreement, so it's crucial to keep Bonchon informed of any changes to your business entity's information.