What are the implications for a Bonchon franchisee if they fail to comply with the export control laws?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
You do not comply, for a period of fifteen (15) days after notification of non-compliance by us or any governmental or quasi-governmental authority, with any federal, state or local law or regulation applicable to the operation of the franchised Business.
You repeatedly fail to comply with one or more requirements of this Agreement, whether or not corrected after notice.
You, your Area Manager, or any of your District Managers violate any law, rule or regulation, and/or engages in any act or practice, which subjects you and/or us to widespread publicity, ridicule or derision.
You or any of your owners' assets, property, or interests are blocked under any law, ordinance, or regulation relating to terrorist activities, or you or any of your owners otherwise violate any such law, ordinance, or regulation.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, a Bonchon franchisee's failure to comply with federal, state, or local laws or regulations applicable to the operation of the franchised business can lead to specific repercussions. According to Item 23, if a franchisee does not comply with any applicable law or regulation for a period of 15 days after notification of non-compliance by Bonchon or any governmental authority, it constitutes grounds for action by Bonchon.
Specifically, Bonchon may choose to terminate the Franchise Agreement if the non-compliance is not resolved within the given timeframe. This means the franchisee could lose their right to operate the Bonchon restaurant. Additionally, repeated failure to comply with the requirements of the Franchise Agreement, whether corrected after notice or not, can also lead to termination.
Furthermore, if the franchisee, their Area Manager, or any of their District Managers violate any law, rule, or regulation, and/or engages in any act or practice, which subjects the franchisee and/or Bonchon to widespread publicity, ridicule, or derision, this can also result in the termination of the agreement. Additionally, if any of the franchisee's or their owners' assets, property, or interests are blocked under any law, ordinance, or regulation relating to terrorist activities, or if they otherwise violate any such law, ordinance, or regulation, Bonchon can terminate the agreement.