When does the initial 10-year term of the Bonchon Franchise Agreement begin?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement* | Summary |
|---|---|---|
| a. Length of the franchise term | Section 4.01 | Term of Franchise Agreement will commence on the effective date and expire 10 years from the day your Bonchon Restaurant commences operations. |
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, the initial term of the Franchise Agreement begins on the effective date and lasts for 10 years, starting from the day the Bonchon restaurant commences operations. This means the franchise term doesn't start when the agreement is signed, but rather when the restaurant actually opens for business.
For a prospective franchisee, this is a beneficial arrangement. The franchisee isn't losing time on their 10-year term while setting up the restaurant. The clock starts ticking once they are operational and generating revenue. This is a fairly standard practice in the franchise industry, as it aligns the term with the franchisee's ability to generate income.
It is important for a potential Bonchon franchisee to understand the 'effective date' as referenced in the FDD. While the 10-year term begins when the restaurant opens, other obligations and timelines may be tied to the effective date of the agreement. Franchisees should clarify with Bonchon what their responsibilities are between signing the agreement and opening their restaurant to ensure they meet all requirements.