Does Bonchon have the option to be assigned the lease for the Restaurant Location after termination?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
At our option, assign to us any interest which you have in the Lease, sublease, right or entry or easement for the Restaurant Location, and vacate the Restaurant promptly and completely, rendering all necessary assistance to us to enable us to take prompt possession.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, upon termination of the Franchise Agreement, Bonchon has the option to have the franchisee assign their interest in the lease for the Restaurant Location to Bonchon. The franchisee must then vacate the premises promptly and provide assistance to Bonchon to ensure a smooth transition of possession.
In addition to lease assignment, if the franchisee owns the Bonchon Restaurant Location, Bonchon has the option to either purchase the location or require the franchisee to execute and deliver a lease for the Restaurant Location to Bonchon or Bonchon's designee on commercially reasonable terms. If Bonchon and the franchisee cannot agree on the lease terms, an independent appraiser will determine the commercially reasonable terms, and both parties will split the appraiser's fee. The appraiser's determination will be binding, and the franchisee must execute and deliver the lease to Bonchon.
These options provide Bonchon with flexibility in maintaining control over the Restaurant Location after a franchise agreement terminates, whether through assignment of an existing lease or by establishing a new lease agreement. This ensures business continuity for Bonchon. For a prospective franchisee, it is important to understand these terms and conditions regarding the Restaurant Location upon termination of the Franchise Agreement.