If Bonchon elects to purchase land, facilities, and vehicles owned by the franchisee and utilized by the franchised business, how will the purchase price be determined?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
All land, facilities and vehicles owned by you (or any affiliate) and utilized by the franchised Business will be purchased for an amount equal to their appraised value as determined by an appraiser we select and you and we share the expense of.
If you own the Bonchon Restaurant Location, we may instead of purchasing the Restaurant Location require you to execute and deliver to us or our designee a lease for the Restaurant Location on commercially reasonable terms.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon exercises its option to purchase land, facilities, and vehicles owned by the franchisee and utilized by the franchised business, the purchase price will be equal to their appraised value.
The appraisal will be conducted by an appraiser selected by Bonchon, and the franchisee and Bonchon will share the expense of the appraisal. This means that the franchisee will have to pay for half of the appraisal cost, regardless of whether they agree with the valuation.
Bonchon also has the option, instead of purchasing the restaurant location, to require the franchisee to execute and deliver a lease for the location on commercially reasonable terms. This provides Bonchon with flexibility in how it secures the restaurant location upon termination or expiration of the franchise agreement.