If Bonchon institutes Co-Branding, can it require a Bonchon franchisee to modify the building and premises of their restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to modifications of the Bonchon System, we may at times co-brand one or more restaurant concepts which we or our affiliates operate with Bonchon System Restaurants and/or offer for sale in Bonchon System Restaurants products sold in businesses operated by us and/or our affiliates (collectively, "Co-Branding"). This Co-Branding may involve changes to the Proprietary Marks, and may require you to modify the building and premises of your Bonchon System Restaurant and the furnishing, fixtures, equipment, signs and trade dress at your Bonchon System Restaurant. If you receive written notice of our institution of Co-Branding, you must implement the Co-Branding at your franchised Business. The Franchise Agreement does not place any limit on our rights to require you to make changes for Co-Branding.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon may institute Co-Branding, which could require franchisees to modify their restaurant's building and premises. Co-branding involves integrating one or more restaurant concepts operated by Bonchon or its affiliates with Bonchon restaurants. It may also involve offering products sold in businesses operated by Bonchon or its affiliates within Bonchon restaurants.
These changes could extend to the Proprietary Marks and may necessitate modifications to the building and premises of the Bonchon restaurant. This includes changes to furnishings, fixtures, equipment, signs, and trade dress. If a franchisee receives written notice of Bonchon's decision to implement co-branding, they are obligated to implement these changes at their franchised business.
The franchise agreement does not limit Bonchon's right to require these changes for co-branding purposes. This means Bonchon has the authority to mandate modifications to a franchisee's restaurant to align with co-branding initiatives, and the franchisee must comply with these requirements.