What happens if a Bonchon franchisee owns the restaurant location and Bonchon chooses not to purchase it?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
n a reasonable time, we will designate an independent appraiser, whose determination will be binding. We and you will each pay 50% of the fee charged by the independent appraiser. If we elect to exercise any right and option to purchase provided in this subparagraph, we will have the right to set off all amounts due from you under this Agreement, and the cost of the appraisal, if any, against any payments for the assets.
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- If we elect not to assume possession of the Bonchon Restaurant Location and/or elect not to exercise our option under Article 19 below, then promptly upon termination or expiration of this Agreement, you agree to "deidentify" the Bonchon Restaurant Location in all respects by performing all redecoration and remodeling, and effecting physical changes to the Location and the franchised Business' vehicles, décor, trade dress, color combination, signs and other physical characteristics, as we consider necessary in our reasonable business judgment to distinguish the Location from a
duly authorized Bonchon Restaurant Location. Without limiting the foregoing, upon our request, you will immediately discontinue use of our color scheme (by repainting if necessary) and will immediately remove all identifying architectural superstructure (as set forth in the plans and specifications for your Restaurant) and other distinguishing structures, décor items, furniture, and equipment from your Restaurant hereunder as we may direct, in order to effectively distinguish your former System Restaurant and other facilities from our proprietary design(s) and trade dress. If you refuse, neglect or fail to do so, we, in addition to any other remedy we have, have the right to enter upon the Location and effect such required changes at your sole risk and expense, and you hereby appoint us or our agents as your attorney(s)-in-fact with full authority to do so without liability for trespass or any other illegality.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee owns the restaurant location and Bonchon decides not to purchase it upon termination or expiration of the franchise agreement, the franchisee is required to "deidentify" the location. This means the franchisee must promptly remove all Bonchon branding and trade dress to distinguish it from a Bonchon restaurant.
Specifically, the franchisee must perform redecoration and remodeling, make physical changes to the location, vehicles, décor, trade dress, color combinations, signs, and other physical characteristics. This includes discontinuing the use of Bonchon's color scheme (repainting if necessary) and removing all identifying architectural superstructure and other distinguishing structures, décor items, furniture, and equipment as directed by Bonchon.
If the franchisee fails to comply with these deidentification requirements, Bonchon has the right to enter the location and make the necessary changes at the franchisee's sole risk and expense. The franchisee appoints Bonchon as their attorney-in-fact to effect these changes without liability for trespass or any other illegality. The expiration or termination of the agreement does not relieve the franchisee of any obligations to Bonchon at the time of expiration or termination, and obligations that naturally survive the termination of the agreement remain in effect.