What must a Bonchon franchisee do regarding existing defaults and obligations before assigning the franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
That, as of the date of the assignment, you have cured any existing defaults under any provisions of this Agreement or any other agreement or arrangement with us or our affiliates, and have fully satisfied in all respects all of your accrued and/or then-current monetary and other obligations to us and our affiliates (under this Agreement or otherwise), all sources of financing of your franchised Business and all material sources of supply of your franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must address any existing defaults and outstanding obligations before assigning their franchise. Specifically, the franchisee must cure any existing defaults under any provision of the Franchise Agreement or any other agreement with Bonchon or its affiliates.
Furthermore, the franchisee must fully satisfy all accrued or current monetary and other obligations to Bonchon and its affiliates. This includes obligations related to the franchise agreement, financing sources for the franchised business, and material sources of supply.
This requirement ensures that the Bonchon franchise system maintains its financial integrity and operational standards during ownership transitions. By requiring franchisees to resolve all outstanding issues before assigning the franchise, Bonchon aims to protect its brand and the interests of other franchisees within the system.