When a Bonchon franchisee proposes an assignee, what information and references must the proposed assignee furnish to Bonchon to determine their qualifications?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not sell or otherwise assign or transfer all or any interest in you (if you are a business entity), the franchise conferred by this Agreement, your franchised Business, your Bonchon Restaurant, your right to use the Bonchon System, Proprietary Marks, Confidential Information and/or Manuals, or any interest in any of these, to a third party without our prior written consent. If we do not elect to exercise our right of first refusal (as provided in Section 14.06 below), which right shall not apply in the event that the assignee is a member of your immediate family, then we will not unreasonably withhold consent to the assignment and sale. You agree that it will not be unreasonable for us to impose, among other requirements, the following conditions to granting consent to the proposed assignment and sale:
- A. That the proposed assignee (meaning all individuals and entities which, after the proposed sale, transfer or assignment, will be franchisees under this Agreement or under any successor agreement) applies to us for acceptance as a franchisee, and furnishes to us the information and references that we request to determine the proposed assignee's skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating and ability to assume your duties and obligations under this Agreement and any related agreement. You must pay the costs of any such investigation conducted by us.
- B. That the proposed assignee (or, if an entity, each and every owner or guarantor of the proposed assignee) presents itself for a personal interview at our corporate office, or any other location we designate, at the date and time we reasonably request, without expense to us. We may determine to meet with your proposed assignee at his, her or its principal
place of business or residence and, if we do, you will reimburse us for all travel, lodging, meal and personal expenses related to such meeting.
C.
That the proposed assignee has the organizational, managerial and financial structure, financial resources and capital required to conduct the franchised Business in accordance with such standards and the satisfaction of such conditions as we indicate from time to time, taking into account such factors (among others) as the number of Restaurants and market areas involved and their geographic proximity.
- D.
That the proposed assignee comply with our ownership requirements relative to the control of the proposed assignee and the franchised Business.
- E.
That the proposed assignee and/or his, her or its proposed Operating Principal attend and receive certification in safe food handling from a state-approved food safety program and attend and successfully complete our Initial Training Program or Partner Training Program (as applicable) before the assignment, and any other training that we reasonably require, at the assignee's expense (which will include our then-current training fee and the cost of the trainee's transportation, lodging, food and other living expenses).
Each individual undergoing such training must first execute the Confidentiality/Non-Competition Agreement substantially in the form of Exhibit E.
We may waive these requirements if the proposed assignee is one of our existing franchisees in good standing.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee wants to sell or transfer their Bonchon franchise to a third party, the proposed assignee must apply to Bonchon for acceptance as a franchisee. The proposed assignee must furnish Bonchon with the information and references Bonchon requests to determine the proposed assignee's skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and ability to assume the current franchisee's duties and obligations under the Franchise Agreement and any related agreements. The franchisee is responsible for covering the costs of any investigation Bonchon conducts on the proposed assignee.
Furthermore, the proposed assignee (or every owner or guarantor if the assignee is an entity) must be available for a personal interview at Bonchon's corporate office or another designated location, at a date and time Bonchon reasonably requests, without any expense to Bonchon. Bonchon may choose to meet the proposed assignee at their principal place of business or residence, but if they do, the franchisee will need to reimburse Bonchon for all travel, lodging, meal, and personal expenses related to the meeting.
Bonchon also requires that the proposed assignee has the organizational, managerial, and financial structure, financial resources, and capital required to conduct the franchised business according to Bonchon's standards and conditions. The number of restaurants and market areas involved, along with their geographic proximity, will be taken into account. The proposed assignee must also comply with Bonchon's ownership requirements relative to the control of the proposed assignee and the franchised business.
Before the assignment, the proposed assignee or their Operating Principal must attend and receive certification in safe food handling from a state-approved food safety program. They must also attend and successfully complete Bonchon's Initial Training Program or Partner Training Program, as applicable, and any other training that Bonchon reasonably requires, all at the assignee's expense, including training fees and costs for transportation, lodging, food, and other living expenses. Each individual undergoing such training must first execute a Confidentiality/Non-Competition Agreement. Bonchon may waive these requirements if the proposed assignee is an existing franchisee in good standing.