What is the length of each Successor Franchise Agreement for Bonchon?
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, a franchisee who meets the requirements for a Successor Term can enter into two consecutive Successor Franchise Agreements. Each of these agreements has a term of five years. This means that after the initial franchise term expires, a franchisee in good standing has the option to extend their relationship with Bonchon for up to an additional ten years through these successor agreements.
For a prospective Bonchon franchisee, this provides an opportunity for long-term business ownership and brand association, assuming they meet the conditions for renewal. The availability of two successive five-year terms offers a degree of security and continuity for franchisees who have successfully operated their restaurants and wish to continue doing so.
However, it is important for franchisees to understand the specific conditions that must be met to qualify for a Successor Term. These conditions are detailed in Sections 4.02 and 13.01 of the Franchise Agreement, and franchisees should carefully review these sections to ensure they are aware of the requirements for renewal. Failing to meet these conditions could result in the franchisee not being able to extend their franchise agreement beyond the initial term.