Must a Bonchon franchisee obtain written approval from the franchisor to relocate the Restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not relocate the Restaurant without our previous written approval. You must pay us a Relocation Fee equal to 25% of our then-current Initial Franchise Fee, plus reimburse us for any reasonable costs we incur in considering your request, provided, however, you will not have to pay us a Relocation Fee or reimburse us for our costs in considering your request to relocate a Remote Kitchen Restaurant when such relocation occurs upon the natural expiration of the lease for your Restaurant Location. For the avoidance of doubt, you will be required to pay us a Relocation Fee and reimburse us for our costs in considering your request to relocate your Remote Kitchen Restaurant Location, if the lease for your Restaurant Location is terminated due to your default. We will grant approval if you are in compliance with the Franchise Agreement, you have paid all money owed to us and our affiliates, the proposed location meets our site selection criteria, and you comply with the lease requirements in the Franchise Agreement. We may, if we wish, inspect your proposed new location.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must obtain prior written approval from Bonchon before relocating their restaurant. This requirement ensures that any relocation aligns with Bonchon's strategic interests and site selection criteria.
In the event of relocation, the franchisee is obligated to pay Bonchon a Relocation Fee equivalent to 25% of the then-current Initial Franchise Fee. Additionally, the franchisee must reimburse Bonchon for any reasonable costs incurred during the consideration of the relocation request. However, there is an exception for Remote Kitchen Restaurants; the relocation fee and cost reimbursement are waived if the relocation occurs upon the natural expiration of the lease, provided the lease termination is not due to the franchisee's default.
Bonchon's approval is contingent upon several factors. The franchisee must be in full compliance with the Franchise Agreement and have paid all outstanding dues to Bonchon and its affiliates. The proposed new location must meet Bonchon's site selection criteria, and the franchisee must adhere to the lease requirements outlined in the Franchise Agreement. Bonchon retains the right to inspect the proposed new location at its discretion. These conditions ensure that any relocation maintains the brand's standards and operational efficiency.