If Bonchon is a sole proprietorship, what responsibility does the representative have?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon your death or long-term disability (if you are an individual) or the death or disability of any "Key Equityholder" as defined below (if you are a business entity), that person's rights will pass to his or her estate, heirs, legatees, guardians or representatives, as appropriate (collectively, the "Estate"). "Key Equityholder" means a 25% shareholder, member, partner or proprietor of the Franchisee as of the Effective Date.
The Estate may continue the operation of the Area Development Business if: (i) the Estate provides a competent and qualified individual acceptable to us to serve as Area Manager and operate your Bonchon Businesses on a full-time basis, and (ii) this individual assumes full-time operation of the Bonchon Businesses as Area Manager within one month of the date the person dies or becomes disabled. If the Estate does not designate an Area Manager or the Estate's designated Area Manager does not assume the full-time operation of the Bonchon Businesses within one month, this will be a material breach of this Agreement which, unless cured by the Estate as provided in Section 15.03, will result in this Agreement being terminated immediately.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a Bonchon franchisee operating as a sole proprietorship dies or becomes disabled, their rights will pass to their estate, heirs, legatees, guardians, or representatives, collectively known as the "Estate." The Estate has the option to continue operating the Bonchon business under specific conditions.
To continue operations, the Estate must provide a competent and qualified individual acceptable to Bonchon to serve as Area Manager and operate the Bonchon Businesses on a full-time basis. This individual must assume full-time operation of the Bonchon Businesses as Area Manager within one month of the date the person dies or becomes disabled.
Failure to designate an Area Manager or ensure the designated Area Manager assumes full-time operation within one month constitutes a material breach of the agreement. Unless the Estate cures this breach as provided in Section 15.03 of the agreement, the agreement will be terminated immediately. This places a significant responsibility on the representative to act quickly and find a suitable replacement to maintain the franchise's operation and avoid termination of the agreement.