How many successor franchise agreements can a Bonchon franchisee enter into?
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 can enter into two consecutive Successor Franchise Agreements. Each of these successor terms is for a duration of five years, provided the franchisee meets the conditions for a Successor Term.
This means that after the initial franchise term of 10 years expires, a Bonchon franchisee has the option to renew their agreement twice. Each renewal extends the franchise agreement for an additional five years. This provides a Bonchon franchisee with the potential to operate their franchise for a total of 20 years, assuming they meet the requirements for renewal.
It is important for prospective Bonchon franchisees to understand the conditions required to qualify for a Successor Term. These conditions are likely outlined in Section 4.02 and 13.01 of the Franchise Agreement, as referenced in the provided table. Understanding these conditions is crucial for franchisees to plan for the long-term operation of their Bonchon franchise and to ensure they can continue operating their business beyond the initial 10-year term.