When does the initial term of the Bonchon Franchise Agreement begin?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Your right to enter into a Successor Franchise Agreement will be conditioned on the following:
- A. We are still offering franchises in the area in which your Restaurant is located;
- B. You must notify us in writing no more than nine months and no less than six months before the expiration of the Initial Term of this Agreement of your intent to enter into
a Successor Franchise Agreement;
C.
Throughout the Initial Term and at the time of your successor term ("Successor Term") you (and your affiliates) must have performed all of your obligations and been, according to our business judgment, in compliance with the terms of this Agreement, the Manuals and other agreements between you (or your affiliates) and us or our affiliates;
- D.
At the time of your Successor Term you (and your affiliates) must be current on the payment of all monetary obligations to us, our affiliates, the lessor or sublessor of your Bonchon Restaurant and any material third party supplier of yours;
- E.
Before the commencement of the applicable Successor Term, you must, at your cost and expense, refurbish, redesign and/or remodel your franchised Bonchon Restaurant as we reasonably require to meet our then current standards, requirements and specifications (including, without limitation, refurbishing, repairing or replacing all equipment, electronic cash register systems, Computer and Point of Sale System and Other Technology, signs, interior and exterior decor items, fixtures, furnishings, supplies and other products and materials required for the operation of the Restaurant and otherwise upgrading the Restaurant as we reasonably require to reflect our then-current System standards and the image of the System);
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
The 2025 Bonchon Franchise Disclosure Document does not explicitly state when the initial term of the Franchise Agreement begins. However, it does provide information regarding the conditions and procedures for obtaining a Successor Franchise Agreement.
To be eligible for a Successor Term, a franchisee must notify Bonchon in writing of their intent to enter into a Successor Franchise Agreement no more than nine months and no less than six months before the expiration of the Initial Term. Throughout the Initial Term and at the time of the Successor Term, the franchisee must have performed all obligations and been in compliance with the terms of the agreements, manuals, and other requirements.
Furthermore, at the time of the Successor Term, the franchisee must be current on all monetary obligations to Bonchon, its affiliates, the lessor/sublessor, and any material third-party supplier. The franchisee is also responsible for refurbishing, redesigning, and/or remodeling the Bonchon Restaurant to meet the then-current standards before the commencement of the Successor Term.
Prospective franchisees should ask Bonchon for clarification on when the initial term of the Franchise Agreement begins, its duration, and any specific events that trigger its commencement.