How long does Bonchon have to conduct due diligence after receiving notice of a proposed assignment?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If we give notice of exercise of our right of first refusal, closing on our purchase must occur within the later of: (i) sixty (60) days following your receipt of our notice to you; (ii) the closing period (if any) specified in the subject offer; or, (iii) such longer period as may be necessary to conduct the due diligence provided for above.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon exercises its right of first refusal regarding a proposed assignment, the closing on Bonchon's purchase must occur within a certain timeframe. This timeframe is determined by whichever is later among three conditions: sixty days following the franchisee's receipt of Bonchon's notice of exercise, the closing period specified in the offer, or a longer period if necessary for Bonchon to conduct due diligence.
This means that Bonchon can extend the closing date beyond the initial 60 days or the period in the offer if it needs more time to perform due diligence on the proposed assignment. This protects Bonchon by ensuring they have enough time to thoroughly investigate the potential assignment before committing to the purchase.
For a prospective Bonchon franchisee, this clause highlights the importance of understanding Bonchon's right of first refusal and the potential delays it can introduce into the assignment process. If a franchisee plans to sell their franchise, they should be aware that Bonchon could delay the closing to conduct due diligence, potentially affecting the timeline of the sale.