What happens if I transfer any rights or obligations under the Bonchon Franchise Agreement without approval?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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 without obtaining prior written consent from Bonchon, it will be considered a material and incurable breach of the agreement.
This means that Bonchon has the right to immediately terminate the Franchise Agreement upon notice to the franchisee, without providing an opportunity to cure the breach. The attempted transfer will be considered null, void, and of no effect. This applies to the transfer of the agreement itself, the franchise, the franchised business, the Bonchon Restaurant, any ownership interest in the franchisee (if a business entity), or any related rights or privileges.
This provision underscores the importance Bonchon places on the personal skill, qualifications, trust, and confidence it has in its franchisees. Because Bonchon relies on these factors when entering into the agreement, unauthorized transfers are strictly prohibited and can result in immediate termination of the franchise relationship. A prospective franchisee should be fully aware of these restrictions and the potential consequences before signing the Franchise Agreement.