If the Bonchon franchisee is a business entity, what is the requirement regarding its good standing and qualification to do business in states and political/governmental subdivisions?

According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee is a business entity, it must be in good standing and qualified to conduct business in every state and political/governmental subdivision that has jurisdiction over the franchised Bonchon business. This requirement ensures that the franchisee is legally compliant and authorized to operate in the relevant areas.

This means that before starting operations, a prospective Bonchon franchisee who is forming a corporation, LLC, or partnership must register their business with the state and any applicable local authorities. They must also maintain this registration by filing required reports and paying any necessary fees to keep the business in "good standing". Failure to comply with these requirements could result in legal penalties, such as fines or the inability to enforce contracts.

Bonchon also requires that the business entity has all the necessary power and authority to execute, deliver, and perform the Franchise Agreement. Furthermore, all necessary business proceedings must be duly taken to authorize the execution, delivery, and performance of the agreement. This protects Bonchon by ensuring the franchisee is fully authorized and capable of meeting its obligations under the agreement.