If transferring a Bonchon franchise, what agreement must the transferee sign, and is another initial franchise fee required?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
t contract. | | | | s. | | | | You must arrange an inspection of the Bonchon Restaurant prior to |
| Provision | Section in Franchise Agreement* | Summary |
|---|---|---|
| the transfer and pay our On-site Inspection Upon Transfer Fee. Either you or the transferee must, at your/its expense, upgrade the Bonchon Restaurant to conform with then-current standards and specifications within the time we reasonably specify. t. You must pay us a transfer fee of $15,000 or such greater amount as is necessary to reimburse us for our reasonable costs and expenses associated with the application for transfer. Notwithstanding the foregoing, there will be no transfer fee if the assignee is a member of your immediate family. \nu. You must correct any existing deficiencies of the Restaurant of which we have notified you. (Subject to state law.) | ||
| n. Our right of first | Section 14.06 | We can match any offer for your Business. (Subject to state law.) |
| refusal to purchase | ||
| your business | ||
| o. Our option to purchase your business | Section 19.01 | We have the option to buy your franchised Business's assets upon termination or expiration. (Subject to state law.) |
| p. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, when transferring a franchise, the Franchise Agreement, its exhibits, and all agreements signed with it are enforceable. This means the transferee must adhere to these documents.
Additionally, the transferring franchisee or the new transferee must cover the costs to upgrade the Bonchon Restaurant to meet the current standards and specifications within a reasonable timeframe set by Bonchon.
Furthermore, a transfer fee of $15,000 is required, or a greater amount if necessary to cover Bonchon's reasonable costs and expenses associated with the transfer application. However, this fee is waived if the assignee is an immediate family member. The FDD does not specify whether a new initial franchise fee is required.