What is the Bonchon franchisee's obligation regarding transferable permits, licenses, and other governmental authorizations if Bonchon exercises its option to purchase the franchised business's assets?

According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon exercises its option to purchase the franchisee's assets upon termination or expiration of the franchise agreement, the franchisee is obligated to transfer or assign all transferable permits, licenses, and other governmental authorizations to Bonchon, its affiliate, nominee, or designee. This includes, specifically, any alcoholic beverage licensing, permits, or authorizations. The transfer or assignment must occur at the soonest possible time.

This requirement ensures that Bonchon can seamlessly continue operating the restaurant if they choose to purchase it. For a franchisee, this means they must cooperate fully in transferring these essential operational documents. Failure to do so could potentially lead to legal complications or delays in the sale of the business assets.

It is important to note that this obligation applies only to permits, licenses, and authorizations that are transferable. The FDD does not specify the process for handling permits that are not transferable, so a prospective franchisee should clarify with Bonchon what would happen in that situation. The franchisee should also confirm what their responsibilities are for permits that cannot be transferred.