What is guaranteed under the Bonchon Franchise Agreement guarantee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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That if the proposed assignee is a business entity, we have the absolute right to require any owners or other parties having an interest in the proposed assignee or the Location to execute the Guarantee substantially in the form of Exhibit H.
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EXHIBIT E TO AREA DEVELOPMENT AGREEMENT GUARANTEE OF BONCHON FRANCHISE LLC AREA DEVELOPMENT AGREEMENT
GUARANTEE OF BONCHON FRANCHISE LLC AREA DEVELOPMENT AGREEMENT
In consideration of the execution by Franchisor of the Area Development Agreement (the "Area Development Agreement") dated ____________________, between Bonchon Franchise LLC ("Franchisor") and __________________________________________ ("Area Developer") and for other good and valuable consideration, each of the undersigned, for themselves, their heirs, successors, and assigns, do jointly, individually and severally hereby absolutely and unconditionally guarantee the payment of all amounts and the performance of all of the covenants, terms, conditions, agreements and undertakings contained and set forth in said Area Development Agreement and in any other agreement(s) by and between Area Developer and Franchisor.
If more than one person has executed this Guarantee, the term "the undersigned", as used herein, shall refer to each such person, and the liability of each of the undersigned hereunder shall be joint and several and primary as sureties.
The undersigned, individually and jointly, hereby agree to be personally bound by each and every covenant, term, condition, agreement and undertaking contained and set forth in said Area Development Agreement and any other agreement(s) by and between Area Developer and Franchisor, and agree that this Guarantee shall be construed as though the undersigned and each of them executed agreement(s) containing the identical terms and conditions of the Area Development Agreement and any other agreement(s) by and between Area Developer and Franchisor.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to the 2025 Bonchon Franchise Disclosure Document, if a proposed assignee is a business entity, Bonchon has the right to require any owners or other parties with interest in the proposed assignee or location to execute a guarantee. This guarantee would be substantially in the form of Exhibit H.
Additionally, in the context of an Area Development Agreement, the guarantee ensures the payment of all amounts and the performance of all covenants, terms, conditions, agreements, and undertakings outlined in the Area Development Agreement and any other agreements between the Area Developer and Bonchon. The guarantee is made jointly, individually, and severally by the undersigned parties, including their heirs, successors, and assigns.
This means that individuals signing the guarantee are personally bound by the terms of the Area Development Agreement as if they had directly executed the agreement themselves. The liability is joint and several, making each signatory fully responsible for the obligations. This provides Bonchon with a legal recourse to ensure all financial and operational commitments are met, reducing the risk of non-compliance or financial loss.