If I lose possession of the Restaurant Location, will Bonchon terminate the agreement?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has the option to terminate the Franchise Agreement if you lose possession of the restaurant location. However, there are exceptions. If the loss of possession is due to the government's exercise of eminent domain or if the premises are damaged or destroyed through no fault of your own, you have 30 days to apply for Bonchon's approval to relocate the restaurant, in accordance with the relocation provisions outlined in the agreement.

This clause protects Bonchon's brand and ensures that franchise locations remain operational, but it also provides some flexibility for franchisees facing circumstances beyond their control. The franchisee has a limited time frame of 30 days to seek approval for relocation, emphasizing the importance of swift action and communication with Bonchon in such situations.

It is important to note that the relocation is subject to Bonchon's approval, and the franchisee must adhere to the relocation provisions of the agreement. This may involve meeting certain criteria for the new location and potentially incurring relocation costs. If the franchisee fails to secure a new location or does not meet Bonchon's requirements, the termination clause may still be enforced.

Prospective franchisees should carefully consider the implications of this termination clause and understand the conditions under which they may be required to relocate or face termination. It is advisable to discuss potential scenarios and relocation options with Bonchon during the due diligence process to fully understand the obligations and potential risks associated with this provision.