Does a Bonchon franchisee have the right to require Bonchon to disclose any variations in standards or franchise agreement terms granted to other franchisees?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that because uniformity under many varying conditions may not be possible or practical, we reserve the right to materially vary our standards or franchise agreement terms for any franchised Bonchon Business, based on the timing of the grant of the franchise, the peculiarities of the particular territory or circumstances, business potential, population, existing business practices, other non-arbitrary distinctions or any other condition which we consider important to the successful operation of the franchised Bonchon Business. You will have no right to require us to disclose any variation or to grant the same or a similar variation to you.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon franchisees do not have the right to demand disclosure of variations in standards or franchise agreement terms offered to other franchisees. Bonchon retains the right to modify standards or franchise agreement terms based on factors such as the timing of the franchise grant, territory peculiarities, business potential, population, existing business practices, and other non-arbitrary distinctions.
This means that Bonchon can offer different terms and conditions to different franchisees based on various factors they deem important for the success of the franchise. A prospective franchisee should understand that the terms they receive may not be the same as those offered to others, and they cannot demand to know what those differences are.
This flexibility allows Bonchon to adapt to different market conditions and franchisee circumstances. However, it also introduces a degree of uncertainty and potential inequity for franchisees, as they may not be aware of more favorable terms offered to others. It is important for a prospective franchisee to carefully consider this aspect and negotiate the best possible terms for their individual situation, as the terms are subject to change based on Bonchon's discretion.