If a Bonchon franchisee violates a law or regulation applicable to the franchised business, how long do they have to comply after notification before it could lead to termination?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee has 15 days to comply with any federal, state, or local law or regulation after receiving notification of non-compliance from Bonchon or any governmental or quasi-governmental authority. Failure to comply within this 15-day period can lead to the termination of the Franchise Agreement.

This requirement underscores the importance of franchisees maintaining full compliance with all applicable laws and regulations. The notification can come from either Bonchon itself or a government entity, meaning franchisees must be prepared to respond to compliance issues raised by either party. The relatively short 15-day cure period means that franchisees need to have systems in place to quickly address and rectify any compliance failures.

It is important to note that this cure period may be affected by local laws. Section 15.06, titled "Notice Required By Law" states that if any applicable law or regulation requires longer notice or cure periods than those set forth in the agreement, then the agreement will be considered modified to conform to the minimum notice and cure periods required by those laws and regulations. However, Bonchon does not waive its right to contest the validity, enforceability, or application of such laws or regulations.

This provision is fairly standard in franchise agreements, as franchisors need to protect their brand and ensure all locations operate legally. Franchisees should maintain open communication with Bonchon and seek legal counsel when necessary to ensure they understand and meet all legal requirements within the specified timeframe.