What is the minimum length of time that a Bonchon franchisee must preserve business, personnel, financial, and operating records?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to keep and preserve for seven years (or such longer period as may be required by any law, rule or regulation) the types and classes of electronic and/or other books, records and tax returns that we specify in our Manuals or otherwise, along with all business, personnel, financial and operating records, in any media, relating to your franchised Bonchon Business. If you do not maintain the required records, this will be a material and incurable breach of this Agreement which, unless we waive the breach, will entitle us to terminate this Agreement immediately upon notice to you, with no opportunity to cure.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees must keep and preserve specific electronic and other books, records, and tax returns for seven years, or longer if required by law. These records include all business, personnel, financial, and operating records related to the Bonchon Business. The specific types and classes of records are detailed in Bonchon's manuals or other directives.
Failure to maintain these required records constitutes a material and incurable breach of the Franchise Agreement. Unless Bonchon waives the breach, they are entitled to terminate the agreement immediately upon notice, without any opportunity for the franchisee to correct the issue.
Bonchon, and its agents, have the right to inspect, audit, and copy all records at any time during normal business hours. This includes books of accounts, bank statements, cash receipts, checkbooks, documents, sales and income tax returns, and files relating to programs, services, products, business transactions, and expenditures. This stringent requirement underscores the importance of meticulous record-keeping for Bonchon franchisees.