What happens if Bonchon does not communicate approval or disapproval of a proposed lease within twenty business days?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If we do not communicate our approval or disapproval of a proposed Lease to you within twenty business days following our receipt of the proposed Lease, then the Lease will be considered and deemed to be disapproved.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon does not communicate its approval or disapproval of a proposed lease within twenty business days after receiving it, the lease is considered disapproved. This means the franchisee cannot proceed with the lease as submitted and must address Bonchon's concerns or find an alternative location.
This stipulation underscores the importance of Bonchon's role in the site selection and lease negotiation process. Franchisees must factor in this review period when planning their timeline for opening a Bonchon restaurant. The disapproval of a lease can lead to delays in the opening date, potentially affecting the franchisee's financial projections and business plans.
It is important for prospective Bonchon franchisees to understand Exhibit C, which contains provisions that Bonchon requires in the lease. Any lease not accompanied by a rider embracing all of the provisions of Exhibit C can be expressly disapproved by Bonchon. Franchisees should work closely with their real estate broker and legal counsel to ensure that any proposed lease meets Bonchon's requirements and includes the necessary rider to avoid automatic disapproval.