What happens if a Bonchon franchisee transfers rights or obligations under the agreement without approval?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You purport or, if you are a business entity, any owner or principal of you purports to transfer any rights or obligations under this Agreement, any interest in you, the franchised Business or your Bonchon Restaurant to any third party in violation of the terms of this Agreement.
Any actual or attempted assignment, transfer or sale of this Agreement, the franchise conveyed hereunder, the franchised Business, your franchised Bonchon Restaurant, any ownership interest in you (if you are a business entity), any of the other interests, rights or privileges identified in the preceding paragraph, or any interest in any of these, in violation of the terms of this Article 14, will be null, void and of no effect, and will be a material and incurable breach of this Agreement which, unless we waive to the breach, will entitle us to terminate this Agreement immediately upon notice to you, with no opportunity to cure.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee attempts to transfer any rights or obligations under the Franchise Agreement, any interest in the franchisee entity, the franchised business, or the Bonchon restaurant to a third party without obtaining prior written consent from Bonchon, it constitutes a material and incurable breach of the agreement.
This unauthorized transfer will be considered null and void, having no legal effect. Bonchon retains the right to immediately terminate the Franchise Agreement upon providing notice to the franchisee. Importantly, the franchisee will not be given an opportunity to correct or remedy this breach.
This provision underscores the importance Bonchon places on controlling who operates its franchises and protects the brand. Franchisees should be aware that any transfer, even if seemingly minor, requires Bonchon's explicit approval to avoid immediate termination of the agreement.