If Bonchon chooses not to purchase the Restaurant Location, what is the Bonchon franchisee required to do?
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.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon elects not to take possession of the restaurant location or exercise its option to purchase the assets upon termination or expiration of the franchise agreement, the franchisee must "deidentify" the location. This means the franchisee is responsible for redecorating, remodeling, and making physical changes to the location, vehicles, décor, trade dress, color schemes, signs, and other physical characteristics to distinguish it from a Bonchon restaurant.
Specifically, the franchisee must discontinue using Bonchon's color scheme, which may involve repainting, and remove all identifying architectural superstructures and other distinguishing structures, décor items, furniture, and equipment as directed by Bonchon. This is to ensure that the former Bonchon location is clearly differentiated from Bonchon's proprietary designs and trade dress.
If the franchisee fails to make these changes, Bonchon has the right to enter the location and make the required 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. This ensures Bonchon can protect its brand identity even after a franchise agreement terminates.