What is the Bonchon franchisee's responsibility to update their representation regarding their location and High-Risk status if it changes during the Term?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee and its owners each represent and warrant that the information provided in this form is true, accurate and complete and that Bonchon Franchise LLC may consider this statement as continuing to be true, accurate and correct from the Effective Date (as defined below) of this form until a written notice of change in ownership and/or in the Operating Principal status is given by Franchisee, and approved by, Bonchon Franchise LLC.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must provide written notice to Bonchon Franchise LLC regarding any changes to the information they initially provided about ownership or the Operating Principal status. This notification must be approved by Bonchon.
In practical terms, this means that the representations made by the franchisee and their owners regarding the accuracy and completeness of their information are considered ongoing from the effective date of the agreement. However, this is contingent on the franchisee providing written notice of any changes in ownership or the Operating Principal status.
This requirement ensures that Bonchon maintains current and accurate records of its franchisees and their key personnel. It also allows Bonchon to reassess the franchisee's suitability and compliance with the franchise agreement based on the updated information. Failure to promptly notify Bonchon of these changes could potentially lead to a breach of the franchise agreement.