If a Bonchon franchisee omits or misrepresents a material fact during the application process, can Bonchon terminate the agreement immediately?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
equipment is instituted
against you and is not dismissed or settled by the earlier of (i) thirty (30) days from commencement or (ii) consummation of such sale; or, if you are a business entity, your governing body adopts any resolution or otherwise authorizes action to approve any of the foregoing activities.
17.02 Termination By Us Upon Notice – No Opportunity To Cure
You will have materially breached this Agreement and we may, at our option, terminate this Agreement and all rights granted under this Agreement, without giving you any opportunity to cure the breach, effective immediately upon your receipt of notice (which, whether sent by certified mail, registered mail, overnight courier or
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can terminate the franchise agreement immediately if a franchisee omits or misrepresents any material fact during the application process. Bonchon does not need to provide an opportunity for the franchisee to correct the breach.
This provision protects Bonchon from entering into agreements with franchisees who provide false or misleading information. Misrepresenting or omitting important details during the application process can be seen as a significant breach of trust and could potentially harm the Bonchon brand.
For a prospective franchisee, this underscores the importance of honesty and accuracy when completing the franchise application. All information provided to Bonchon should be truthful, complete, and transparent. Failure to do so could result in immediate termination of the franchise agreement, leading to a loss of investment and the opportunity to operate a Bonchon restaurant.