When is a Bonchon franchisee required to designate an Area Manager?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you are entering into a franchise agreement for the operation of your third Bonchon Business, then you must designate an "Area Manager" to us in writing prior to opening your (or your affiliates', collectively with you) third Bonchon Business. The Area Manager will oversee the operations of each Bonchon Restaurant that you and/or your affiliates own and operate. The Area Manager must be certified to manage multi-unit operations. Your Area Manager must also have first attended, received and hold a current Bonchon approved nationally accredited food manager certification from the National Restaurant Association in addition to any safe food handling courses required by the local municipality in which the subject Restaurant is located. Once your Area Manager has obtained its Bonchon approved nationally accredited food manager certification, then your Area Manager must
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 69–71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees must designate an Area Manager in writing before opening their third Bonchon Business. This requirement applies whether the development of the third Bonchon Business is (i) pursuant to the Development Schedule in Section 6.01 of the Area Development Agreement, (ii) the result of entering into separate unrelated unit franchise agreements, (iii) the result of acquiring existing Bonchon Businesses or (iv) the result of some combination of the foregoing. The Area Manager will oversee the operations of each Bonchon Restaurant that the franchisee and/or their affiliates own and operate.
The Area Manager must be certified to manage multi-unit operations and must have a Bonchon-approved nationally accredited food manager certification from the National Restaurant Association, in addition to any safe food handling courses required by the local municipality. The Area Manager must also attend and successfully complete Bonchon's Initial Training Program, as well as any additional training that Bonchon may require. The franchisee must inform Bonchon in writing of their Area Manager and any replacement Area Manager.
If the Area Manager's employment is terminated, or in the event of their death or disability, the franchisee must immediately notify Bonchon. Within 10 days of the event, the franchisee must designate a successor Area Manager. The Area Manager cannot hold any other position in the franchisee's organization or in any of their Bonchon Businesses while serving as Area Manager.