What must a Bonchon franchisee in Washington do after the termination of the second Successor Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchisor will have no obligation upon the termination of the second Successor Franchise Agreement to offer the Franchisee a continued right to operate its Bonchon Business, and the Franchisee may be required at that time to stop operating its restaurant as a Bonchon Restaurant and to comply with all post-termination obligations.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee in Washington who has reached the end of their second Successor Franchise Agreement faces specific requirements. Bonchon is under no obligation to offer a continued right to operate the Bonchon business. Consequently, the franchisee may be required to cease operating their restaurant as a Bonchon Restaurant.
Furthermore, the franchisee must comply with all post-termination obligations as outlined in the franchise agreement. These obligations typically include ceasing to use Bonchon's trademarks, trade secrets, and other proprietary information. The franchisee may also be subject to non-compete restrictions, preventing them from operating a similar business in the same geographic area for a specified period.
It is important for prospective Bonchon franchisees in Washington to carefully review the terms of the franchise agreement regarding termination and post-termination obligations. Understanding these requirements is crucial for making informed decisions about investing in a Bonchon franchise and planning for the future of their business.