If a Bonchon franchisee has not suggested a Restaurant Location approved before the execution of the Franchise Agreement, what provisions apply to the Restaurant Location?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
s or our affiliates for programs, products or services that you purchase from us or our affiliates.
6. SITE SELECTION, CONSTRUCTION, TRADE DRESS AND LEASE REQUIREMENTS
6.01 Restaurant Location
- A. You may operate your franchised Bonchon Business only from your Restaurant Location. You may use the Restaurant Location for no other purpose than the operation of the franchised Business.
- B. If you have suggested a Restaurant Location which we have approved before the execution of this Agreement, then the address of that Restaurant Location will be set forth on Exhibit A to this Agreement. If you have not suggested a Restaurant Location which we have approved before the execution of this Agreement, then the following provisions will apply:
We will furnish to you our Bonchon Restaurant site selection criteria following the execution of this Agreement. You agree to use your best efforts to find an acceptable Restaurant Location within the geographical area described in Exhibit A (the "Site Selection Area"). The Site Selection Area may be defined using both a written description and/or a map. If we use both a written description and a map to define your Site Selection Area, you acknowledge and expressly agree that should there be a conflict between the map and the written description, the written description will control. The Site Selection Area will not determine the size or description of your Protected Territory; it is only the geographical area within which you will have the right to look for a site for your Restaurant Location. You must comply with all our Restaurant specifications, requirements and restrictions. The Restaurant Location will be subject to our advance written approval, and our determination will be final. You are required you to utilize a Bonchon approved real estate broker, submit maps, completed checklists, photographs, diagrams of the premises with measurements and other information and materials which we may reasonably require to evaluate your proposed Restaurant Location. We also may visit the proposed Restaurant Location in order to evaluate its suitability. If you request that we visit the proposed Restaurant Location, the first visit will be free of cost, with any subsequent visits costing $500 per day plus the cost of our travel expenses.
It is of the essence of this Agreement that you select a Restaurant Location and obtain our advance written approval for your Restaurant Location within 90 days following the Effective Date of this Agreement and that you sign a lease approved by us (or provide proof of ownership or an executed contract of sale) for your Restaurant Location within 120 days following the Effective Date of this Agreement. If you will be operating a Remote Kitchen Restaurant, then you must select a Restaurant Location and obtain our advance written approval for your Restaurant Location within 60 days following the Effective Date of this Agreement and that you sign a lease approved by us (or provide proof of ownership or an executed contract of sale) for your Restaurant Location within 90 days following the Effective Date of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee has not suggested a Restaurant Location approved before signing the Franchise Agreement, certain provisions regarding site selection apply.
The franchisee may operate their Bonchon Business only from the approved Restaurant Location and use it solely for the franchised business. The franchisee must select a Restaurant Location and get written approval within 90 days of the agreement's effective date (or 60 days for a Remote Kitchen Restaurant) and sign a lease or provide proof of ownership within 120 days (90 days for Remote Kitchen Restaurant) of the effective date. Failure to secure a location within these timeframes is a material breach, potentially leading to immediate termination of the agreement by Bonchon. In the event of termination, Bonchon will retain all funds paid, including the initial franchise fee, and the franchisee must execute a general release.
If the franchisee and Bonchon cannot agree on a Restaurant Location within 90 days (60 days for Remote Kitchen Restaurant) of the effective date, Bonchon can terminate the agreement. As with a breach due to failure to secure a location, Bonchon will not refund any portion of the initial franchise fee, and the franchisee must execute a general release. Bonchon's advice, inspection, or approval of any proposed site does not constitute a guarantee of the location's profitability or viability.