What level of effort is a Bonchon franchisee expected to devote to the operation of the Business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ense.
ITEM 15 OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS
Franchise Agreement
You must personally supervise the operation of the franchised Business, unless we permit otherwise in writing. You must devote the necessary time and your best efforts for the proper and effective operation of the Business. If we license you to operate more than one Bonchon Business, you must devote the time necessary for the proper and effective operation of all your Businesses.
If you are an individual, you must serve as Operating Principal and if you are an entity franchisee, you must designate an individual who either owns a majority interest in the franchised Business or, where there is no majority owner, who we otherwise approve of in writing to serve as your Operating Principal. The Operating Principal, who will have complete decision-making authority with regard to your franchised Bonchon Business and have authority to in all respects act on your behalf, will be the sole individual with whom we will be required to communicate when we seek to communicate with you. You must inform us in writing of your Operating Principal and any replacement Operating Principal in advance. We must approve your Operating Principal before you appoint them. Your Operating Principal must complete the Initial Training Program to our satisfaction, if he or she will have on-site supervision of the Restaurant's daily operations on a full-time basis. If your Operating Principal will not engage in the on-site management of the Restaurant's day-to-day operations on a full-time basis, then your Operating Principal must either attend and successfully complete our Initial Training Program or Partner Training Program. After an Operating Principal's death, disability or termination of employment, you must immediately (but no later than 5 days from the occurrence of such event) notify us, and you must designate a successor or acting Operating Principal within 10 days from the occurrence of such event.
If an individual, you must either serve as or designate a General Manager. If you are an individual, we recommend that you personally serve as your own General Manager. If you are an entity, then your Operating Principal may serve as your General Manager or you may designate a General Manager. If your Operating Principal will have on-premises management responsibility over the Restaurant's daily operations on a full-time basis, then we will consider your Operating Principal to be the General Manager. The General Manager, who will have full-time day-to-day management responsibility for your Bonchon Business and Restaurant, will exercise on-premises supervision and personally participate in the direct operation of the Business and Restaurant. You must inform us in writing of your General Manager and any replacement General Manager in advance. We must approve your General Manager(s) before you appoint them. Your General Manager(s) must attend and successfully complete the Initial Training Program. In addition to your General Manager, you must employ a second full-time manager to serve as your assistant or kitchen manager (the "Manager"). Your Manager will also have day-to-day management responsibility for your Bonchon Business and Restaurant, and will exercise on-premises supervision and personally participate in the direct operation of the Business and Restaurant. The Manager must attend and successfully complete the Initial Training Program.
If you are entering into a franchise agreement for the operation of your third Bonchon Business, then you must designate an "Area Manager" to us in writing prior to opening your (or your affiliates', collectively with you) third Bonchon Business. The Area Manager will oversee the operations of each Bonchon Restaurant that you and/or your affiliates own and operate. The Area Manager must be certified to manage multi-unit operations. Your Area Manager must also have first attended, received and hold a current Bonchon approved nationally accredited food manager certification from the National Restaurant Association in addition to any safe food handling courses required by the local municipality in which the subject Restaurant is located.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 69–71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must personally supervise the franchised business, dedicating the necessary time and best efforts for its effective operation, unless Bonchon permits otherwise in writing. If a franchisee operates multiple Bonchon businesses, they must dedicate the time necessary for the proper operation of all locations.
If the franchisee is an individual, they must serve as or designate a General Manager. Bonchon recommends that individual franchisees personally serve as their own General Manager. If the franchisee is a business entity, they must designate an Operating Principal who either owns a majority interest or is otherwise approved by Bonchon, to serve as the Operating Principal. The Operating Principal has complete decision-making authority and acts on behalf of the franchisee. The Operating Principal must complete the Initial Training Program if they will have on-site supervision of the Restaurant's daily operations on a full-time basis. If not engaging in on-site management full-time, the Operating Principal must complete either the Initial Training Program or Partner Training Program.
In addition to a General Manager, franchisees must employ a second full-time manager to serve as an assistant or kitchen manager. Both the General Manager and the Manager must attend and successfully complete the Initial Training Program. Franchisees must inform Bonchon in writing of their General Manager and any replacement General Manager in advance, and Bonchon must approve them before appointment. There must be at least one Restaurant Manager on duty during all hours of operation, and at least two certified and fully trained individuals present at the Restaurant at all times.
For franchisees operating three or more Bonchon businesses, an Area Manager must be designated in writing to oversee the operations of all locations. The Area Manager must be certified to manage multi-unit operations, hold a Bonchon-approved nationally accredited food manager certification, and complete the Initial Training Program, along with any additional required training. The Area Manager cannot hold any other position within the franchisee's organization or any of their Bonchon businesses while serving as Area Manager. Upon the death, disability, or termination of employment of a General Manager, Area Manager, or Manager, the franchisee must immediately notify Bonchon and designate a successor within 10 days.