If a Bonchon Business is operated by two or more co-venturers, how are the voting rights determined?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything
to the contrary set forth in these By-Laws, if a Bonchon Business is operated by two or more coventurers, such co-venturers collectively, and not individually, shall be entitled to exercise the voting rights which may arise by virtue thereof; and, for the purpose of determining voting rights hereunder, no individual co-venturer shall be deemed to so operate any such business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the voting rights for a Bonchon Business operated by two or more co-venturers are collectively exercised. The co-venturers do not have individual voting rights. Instead, they collectively have the voting rights for the Bonchon Business.
This means that if multiple individuals or entities co-own a Bonchon franchise, they must come to an agreement on how to cast their vote. Bonchon does not grant each co-venturer a separate vote. This ensures that each Bonchon Business has only one vote, regardless of how many co-venturers are involved.
For a prospective Bonchon franchisee, this is an important consideration when entering into a co-venture agreement. The co-venturers will need a clear understanding of how decisions will be made and how the vote will be cast to avoid potential conflicts. The co-venturers will need to decide amongst themselves how they will vote on any given issue related to the Corporation.