What payments are immediately due from a Bonchon franchisee upon expiration or termination of the Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon expiration or earlier termination of this Agreement for whatever reason, you agree to:
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- Immediately pay all sums due and owing to us or our affiliates, plus interest, and all sums due and owing to any landlord, employees, taxing authorities, advertising agencies and all other third parties.
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- If we terminate because of your default, pay us all losses and expenses we incur as a result of the default or termination, including all damages, costs, and expenses, and reasonable attorneys' and experts' fees directly or indirectly related thereto, such as (without limitation) lost profits, lost opportunities, damage inuring to our Proprietary Marks and reputation, travel and personnel costs and the cost of securing a new Area Developer for the Development Territory. This obligation will give rise to and remain, until paid in full, a lien in our favor against any and all of assets, property, furnishings, equipment, signs, fixtures and inventory owned by you and any of the Bonchon Businesses at the time of termination and against any of your money which we are holding or which is otherwise in our possession.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, upon the expiration or termination of the Franchise Agreement, a franchisee must immediately pay several categories of outstanding financial obligations. These include all royalties, fees, and other sums owed to Bonchon or its affiliates, along with accrued interest.
In addition to payments due to Bonchon, the franchisee is also responsible for immediately settling all outstanding debts to various third parties. This encompasses any sums owed to landlords, suppliers, employees, taxing authorities, and advertising agencies. The franchisee is also liable for any debts owed to lenders and all other third parties.
Furthermore, if Bonchon terminates the agreement due to the franchisee's default, the franchisee is obligated to cover all losses and expenses incurred by Bonchon as a result of the termination. This includes damages, costs, expenses, and reasonable attorney and expert fees that are directly or indirectly related to the default or termination. These costs may include lost profits, lost opportunities, damage to Bonchon's proprietary marks and reputation, travel and personnel costs, and the expense of securing a new Area Developer for the Development Territory. This obligation is secured by a lien in Bonchon's favor against the franchisee's assets.