For Bonchon franchisee membership, what constitutes 'good standing' regarding the Bonchon Franchise license?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Any Bonchon franchisee who operates Bonchon Business located within the ADI under license granted by Bonchon Franchise LLC ("Bonchon Franchise") for such purpose or representative of any company-owned Bonchon Business shall be eligible for membership in the Corporation, providing that such license granted by is in good standing. "Good standing", for the purpose of the preceding sentence, shall mean that the license granted by Bonchon Franchise to operate a Bonchon Business in the ADI has not been terminated and has not expired and that the member is not currently in default of its payment obligations under its Franchise Agreement with Bonchon Franchise.
Notwithstanding anything to the contrary set forth above, if a member no longer has a license in good standing to operate a Bonchon Business in the ADI (as defined by Section 4.01 of these By-Laws), expulsion of such member shall be automatic and shall not require a meeting or vote of the Board or of the membership.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee's license must be in "good standing" to be eligible for membership in the Corporation. For the purposes of membership, "good standing" means that the Bonchon Franchise license to operate a Bonchon Business in the ADI (Area of Dominant Influence) has not been terminated or expired.
Additionally, to maintain 'good standing', a member must not be in default of their payment obligations under the Franchise Agreement with Bonchon Franchise LLC. This implies that franchisees must adhere to the payment terms outlined in their agreement to remain eligible for membership within the Bonchon franchisee organization.
If a Bonchon franchisee's license is not in good standing, their membership can be automatically terminated without requiring a meeting or vote of the Board or of the membership. This highlights the importance of maintaining compliance with the franchise agreement and fulfilling payment obligations to retain membership privileges within the Bonchon system.