If Bonchon elects not to assume possession of the Restaurant Location, what is the franchisee required to do to the Bonchon Restaurant Location?
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 chooses not to take possession of the restaurant location upon termination or expiration of the franchise agreement, the franchisee is responsible for de-identifying the location. This means the franchisee must promptly remove all elements that identify it as a Bonchon restaurant.
Specifically, the franchisee must perform redecoration and remodeling to remove Bonchon's trade dress, color schemes, signs, and other physical characteristics. This includes discontinuing the use of Bonchon's color scheme, removing any identifying architectural features, décor items, furniture, and equipment according to Bonchon's directions. The goal is to ensure the location is clearly distinguishable from an authorized Bonchon restaurant.
If the franchisee fails to make these changes, Bonchon has the right to enter the location and make the necessary changes themselves at the franchisee's expense. The franchisee appoints Bonchon as their attorney-in-fact to carry out these changes without liability for trespass or any other legal issues. This ensures that Bonchon can protect its brand identity and prevent customer confusion after a franchise agreement ends.