If a Bonchon Participating Franchisee's funding is terminated, what is the annual compounded interest rate applied to the unearned funding?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If this Agreement expires or terminates for any reason or is assigned by you, you will cease to be an authorized Bonchon franchisee and you will lose all rights to the use of our Proprietary Marks, the Bonchon System, all Confidential Information and know-how owned by us and any goodwill (including "local" goodwill) engendered by the use of our Proprietary Marks and/or attributed to your conduct of the franchised Business.
Upon expiration or earlier termination of this Agreement for whatever reason, you agree to:
- Immediately pay all royalties, fees and other sums due and owing to us or our affiliates, plus interest, and all sums due and owing to any landlord, suppliers, employees, taxing authorities, advertising agencies, lenders and all other third parties.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
I am unable to provide information about the annual compounded interest rate applied to unearned funding if a Bonchon Participating Franchisee's funding is terminated, based on the provided 2025 FDD excerpts. While the excerpts discuss various financial obligations upon termination, including the payment of royalties, fees, and other sums due, they do not specify the interest rate applied to unearned funding in such cases.
Item 18.01(1) mentions the obligation to pay all royalties, fees, and other sums due plus interest, but it does not specify the interest rate. This section focuses on the franchisee's responsibilities after termination, such as discontinuing the use of Bonchon's proprietary marks and settling outstanding debts.
To gain clarity on this matter, a prospective Bonchon franchisee should directly inquire with the franchisor about the specific interest rate applied to unearned funding upon termination. Understanding these financial implications is crucial for making an informed investment decision.