Is Bonchon obligated to specify electronic or written accounting and MIS systems for franchisees?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
A. You agree to record all Gross Revenues received by and all expenditures made by you or your franchised Business. You further agree to keep and maintain adequate records of all such Gross Revenues and expenditures and to maintain accurate books, records and tax returns, including related supporting material (such as cash receipts, and credit and charge records) for your franchised Business. We may specify, in our Manuals or otherwise, the forms and media that you will be required to use in recording your franchised Business' Gross Revenues and expenditures. 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.
- B. We and/or our agents (who may be outside accountants and auditors), designees and/or employees will have the right, at any time, with or without written notice, during normal business hours, to enter your Bonchon Restaurant and any other premises from which the Business is conducted, in a fashion calculated not to disrupt your Restaurant's and Business's operations, to inspect, audit and make copies of all records including, but not limited to, the following: books of accounts; bank statements; cash or other receipts; checkbooks; documents; records; sales and income tax returns (federal, state, foreign and, if applicable, city); and, your files relating to programs, services and products sold, business transacted and expenditures relating to the Business. These files must include (without limitation) your operating records; bookkeeping and accounting records; customer lists; customer job orders; operating records; operating reports; correspondence; general
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to maintain accurate records of all gross revenues and expenditures related to their franchised business. Bonchon may specify the forms and media franchisees must use to record these figures, as detailed in their manuals or other communications.
Bonchon requires franchisees to keep and preserve these records for seven years, or longer if required by law. These records must include electronic and other books, records, and tax returns, along with all business, personnel, financial, and operating records in any media. Failure to maintain these required records constitutes a material and incurable breach of the Franchise Agreement, potentially leading to immediate termination if Bonchon does not waive the breach.
Bonchon, along with its agents, has the right to inspect, audit, and copy all records at any time during normal business hours, with or without written notice. This includes books of accounts, bank statements, cash receipts, checkbooks, documents, sales and income tax returns, and files related to programs, services, products sold, business transacted, and expenditures. These files must include operating records, bookkeeping and accounting records, customer lists, customer job orders, operating reports, and correspondence.