What information must a Bonchon franchisee provide to Bonchon when proposing to assign their interest in the franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not sell or otherwise assign or transfer all or any interest in you (if you are a business entity), the franchise conferred by this Agreement, your franchised Business, your Bonchon Restaurant, your right to use the Bonchon System, Proprietary Marks, Confidential Information and/or Manuals, or any interest in any of these, to a third party without our prior written consent. If we do not elect to exercise our right of first refusal (as provided in Section 14.06 below), which right shall not apply in the event that the assignee is a member of your immediate family, then we will not unreasonably withhold consent to the assignment and sale. You agree that it will not be unreasonable for us to impose, among other requirements, the following conditions to granting consent to the proposed assignment and sale:
- A. That the proposed assignee (meaning all individuals and entities which, after the proposed sale, transfer or assignment, will be franchisees under this Agreement or under any successor agreement) applies to us for acceptance as a franchisee, and furnishes to us the information and references that we request to determine the proposed assignee's skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating and ability to assume your duties and obligations under this Agreement and any related agreement. You must pay the costs of any such investigation conducted by us.
- B. That the proposed assignee (or, if an entity, each and every owner or guarantor of the proposed assignee) presents itself for a personal interview at our corporate office, or any other location we designate, at the date and time we reasonably request, without expense to us. We may determine to meet with your proposed assignee at his, her or its principal
place of business or residence and, if we do, you will reimburse us for all travel, lodging, meal and personal expenses related to such meeting.
C.
That the proposed assignee has the organizational, managerial and financial structure, financial resources and capital required to conduct the franchised Business in accordance with such standards and the satisfaction of such conditions as we indicate from time to time, taking into account such factors (among others) as the number of Restaurants and market areas involved and their geographic proximity.
- D.
That the proposed assignee comply with our ownership requirements relative to the control of the proposed assignee and the franchised Business.
- E.
That the proposed assignee and/or his, her or its proposed Operating Principal attend and receive certification in safe food handling from a state-approved food safety program and attend and successfully complete our Initial Training Program or Partner Training Program (as applicable) before the assignment, and any other training that we reasonably require, at the assignee's expense (which will include our then-current training fee and the cost of the trainee's transportation, lodging, food and other living expenses).
Each individual undergoing such training must first execute the Confidentiality/Non-Competition Agreement substantially in the form of Exhibit E.
We may waive these requirements if the proposed assignee is one of our existing franchisees in good standing.
- F.
That the lessor or sublessor of your Bonchon Restaurant Location consents in writing to the assignment of your lease to the proposed assignee.
- G.
That, as of the date of the assignment, you have cured any existing defaults under any provisions of this Agreement or any other agreement or arrangement with us or our affiliates, and have fully satisfied in all respects all of your accrued and/or then-current monetary and other obligations to us and our affiliates (under this Agreement or otherwise), all sources of financing of your franchised Business and all material sources of supply of your franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee wants to sell or assign their interest in the franchise to a third party, the proposed assignee must apply to Bonchon for acceptance as a franchisee. As part of this application, the proposed assignee must furnish Bonchon with information and references that Bonchon requests to determine the proposed assignee's skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and ability to assume the current franchisee's duties and obligations under the Franchise Agreement and any related agreements. The franchisee is responsible for covering the costs of any investigation Bonchon conducts on the proposed assignee.
In addition to providing the requested information, the proposed assignee (and each owner or guarantor, if the assignee is an entity) must attend a personal interview at Bonchon's corporate office or another designated location, at their own expense. Bonchon may choose to meet the proposed assignee at their place of business or residence, in which case the current franchisee will reimburse Bonchon for all travel, lodging, meal, and personal expenses related to the meeting. The proposed assignee must also demonstrate that they have the organizational, managerial, and financial structure, resources, and capital required to operate the franchised business according to Bonchon's standards, considering factors such as the number of restaurants and market areas involved.
Furthermore, the proposed assignee must comply with Bonchon's ownership requirements, obtain certification in safe food handling from a state-approved program, and successfully complete Bonchon's Initial Training Program or Partner Training Program before the assignment, at the assignee's expense, including training fees and living expenses. Each individual undergoing training must also sign a Confidentiality/Non-Competition Agreement. Bonchon may waive these requirements if the proposed assignee is an existing franchisee in good standing. The lessor or sublessor of the Bonchon Restaurant location must also consent in writing to the assignment of the lease to the proposed assignee. Finally, the current franchisee must cure any existing defaults and satisfy all accrued monetary and other obligations to Bonchon and its affiliates before the assignment can proceed.