What information can Bonchon request from a proposed assignee of a Bonchon franchise to determine their qualifications?
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.
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 their Bonchon Restaurant to a third party, Bonchon can request certain information from the proposed assignee to assess their qualifications. Bonchon will not unreasonably withhold consent to the assignment and sale, provided the assignee is not a member of the franchisee's immediate family, and Bonchon does not elect to exercise its right of first refusal.
Bonchon can request that the proposed assignee apply for acceptance as a franchisee and furnish information and references. This information helps Bonchon determine the 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 current franchisee is responsible for covering the costs of any investigation Bonchon conducts on the proposed assignee.
Furthermore, Bonchon can require the proposed assignee (or each owner/guarantor if the assignee is an entity) to attend a personal interview at Bonchon's corporate office or another designated location. The proposed assignee bears the expense of attending this interview. However, if Bonchon chooses to meet the assignee at their place of business or residence, the current franchisee must reimburse Bonchon for all travel, lodging, meal, and personal expenses related to the meeting. Bonchon can also require that the proposed assignee has the organizational, managerial, and financial structure, financial resources, and capital required to conduct the franchised business according to Bonchon's standards.