How long is the initial franchise term for a Bonchon franchise?
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 term of the Franchise Agreement is 10 years. This term commences on the effective date of the agreement and expires 10 years from the day the Bonchon restaurant commences operations.
After the initial term, a franchisee has the option to enter into two consecutive Successor Franchise Agreements, each lasting for a term of five years. This provides an opportunity for franchisees to extend their business operations with Bonchon beyond the initial 10-year period, provided they meet the conditions for a Successor Term.
For a prospective franchisee, understanding the term length is crucial for long-term business planning and investment decisions. The initial 10-year term provides a significant window for establishing and growing the business, while the option for two additional 5-year terms offers flexibility for future operations. Franchisees should carefully review the conditions required to qualify for a Successor Term to ensure they can continue their Bonchon franchise beyond the initial agreement.