What level of effort is required of a Bonchon franchisee in supervising the operation of the franchised business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless we otherwise permit in writing, you agree to personally supervise the operation of the franchised Bonchon Business and to devote the necessary time, attention and best efforts to the performance of your obligations under this Agreement, all ancillary documents relating to this Agreement and all other agreements which may now or hereafter be in effect between us (or any affiliate) and you (or any affiliate). If you are licensed to operate more than one Bonchon Business, then you agree to devote such amount of your time and attention to the performance of your duties as is necessary for the proper and effective operation of each such Business.
You must designate an "Operating Principal" for your franchised Business. If you are an individual, then you must serve as Operating Principal and if you are an entity, 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. Before you designate the Operating Principal, you must identify such individual to us; furnish information to us regarding the candidate's background, experience and credentials; and, secure our prior written approval of the candidate, which we will not unreasonably withhold or deny. Your Operating Principal must have complete decision-making authority with regard to your franchised Bonchon Business and must have authority to in all respects act on your behalf under this Agreement. Your Operating Principal is the sole individual with whom we will be required to communicate when we seek to communicate with you. Either the Operating Principal and/or you must satisfy our initial training requirements pursuant to Section 7.02 hereof.
If an individual, you must either serve as or designate a "General Manager" for your franchised Business. If you are an individual, then you may serve as General Manager. If you are an entity, then your Operating Principal must serve as or designate a General Manager. If your Operating Principal will have on-site management responsibility over the Restaurant's daily operation on a full-time basis, then we will consider your Operating Principal to be the General Manager. Before designating and engaging the services of the General Manager, you must identify such individual to us; furnish information to us regarding the candidate's background, experience and credentials; and, secure our prior written approval of the candidate, which we will not unreasonably withhold or deny. Your General Manager, who will have full-time day-to-day management responsibility for your Bonchon Business, will exercise on-premises supervision and personally participate in the direct operation of the Business. Your General Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.
Additionally, you must employ a second full-time manager to serve as your manager (the "Manager"). Your Manager will also have day-to-day management responsibility for your Bonchon Business, and will exercise on-premises supervision and personally participate in the direct operation of the Business. You Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.
If this Agreement is for the opening of your (or your affiliates, collectively with you) third Bonchon Business, then you must designate an "Area Manager" to us in writing prior to opening your third Bonchon Business, who 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 secure the requisite certifications and attend and successfully complete the training that we prescribe in Section 7.02 above.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees must personally supervise the operation of the franchised business, dedicating the necessary time, attention, and best efforts to fulfill their obligations under the Franchise Agreement. If a franchisee operates more than one Bonchon Business, they must allocate sufficient time and attention to ensure the proper and effective operation of each location.
Bonchon requires franchisees to designate an "Operating Principal" who has complete decision-making authority. If the franchisee is an individual, they must serve as the Operating Principal. If the franchisee is an entity, the Operating Principal must either own a majority interest in the business or be approved in writing by Bonchon. The Operating Principal is Bonchon's primary point of contact and must meet initial training requirements.
In addition to the Operating Principal, Bonchon requires the franchisee to designate a General Manager who has full-time, day-to-day management responsibility for the Bonchon Business, exercising on-premises supervision and personally participating in the direct operation of the business. The General Manager must also satisfy Bonchon's initial training requirements. Franchisees must also employ a second full-time manager who will also have day-to-day management responsibilities. For franchisees with three or more Bonchon Businesses, they must designate an Area Manager to oversee the operations of all their Bonchon Restaurants. This Area Manager must be certified to manage multi-unit operations and must complete the initial training program.