What is the length of the initial franchise term for a Bonchon restaurant?
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. |
| b. Renewal or exten- sion of the term | Section 4.02, 13.01 | You can enter into two consecutive Successor Franchise Agreements for a term of five years each if you comply with the conditions for a Successor Term. |
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 franchise term for a Bonchon Restaurant commences on the effective date of the Franchise Agreement and extends for 10 years from the day the Bonchon Restaurant commences operations. This means a franchisee will operate under the initial agreement for a decade, starting from when the restaurant first opens its doors.
Bonchon offers the possibility of renewal, allowing franchisees to enter into two consecutive Successor Franchise Agreements, each with a term of five years. This provides an opportunity to extend the franchise relationship beyond the initial term, contingent upon meeting certain conditions.
For a prospective franchisee, understanding the term length is crucial for long-term business planning. It dictates the period during which they can operate under the Bonchon brand and benefit from its established systems and support. The renewal option provides added security and potential for continued operation, assuming the franchisee meets the requirements for a Successor Term.