If the Bonchon franchise agreement is terminated, does this affect other agreements between the parties or their affiliates, unless stated otherwise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The execution of the new Franchise Agreement will terminate this Agreement, except for your guarantees; any of your obligations to us or our affiliates which remain outstanding and/or unsatisfied; and, the post-termination and post-expiration provisions of this Agreement which, by their nature, will survive.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the execution of a new Franchise Agreement in the event of an assignment will terminate the existing agreement. However, certain obligations will survive the termination. These include any guarantees made by the franchisee, any outstanding obligations to Bonchon or its affiliates that remain unsatisfied, and any post-termination or post-expiration provisions outlined in the agreement that are designed to survive such events.
This means that even after the Franchise Agreement is terminated due to an assignment and a new agreement is in place with the assignee, the original franchisee may still be responsible for certain financial or legal obligations. For example, if the franchisee provided a guarantee for any loans or leases related to the Bonchon business, that guarantee would remain in effect. Similarly, any outstanding payments owed to Bonchon or its affiliates would still need to be settled.
Franchisees should carefully review the sections of the Franchise Agreement that outline these surviving obligations to fully understand their responsibilities even after the agreement is terminated. It is important to note that the specific terms and conditions of these obligations are subject to the details outlined in the Franchise Agreement.