What are the potential consequences for a Bonchon franchisee if they fail to disclose their status as a High-Risk Person?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
You make a willful misrepresentation or do not make a material disclosure required by any governmental authority regarding any matter involving or affecting the operations of your franchised Bonchon Business and Restaurant.
"High-Risk Person" means any individual or entity that Stripe has deemed to be of particularly high risk, as identified on the Stripe Restricted Business List.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee making a willful misrepresentation or failing to make a material disclosure required by any governmental authority regarding any matter involving or affecting the operations of their franchised Bonchon Business and Restaurant can face consequences. This includes failing to disclose their status as a "High-Risk Person," which Bonchon defines with reference to Stripe's Restricted Business List.
Specifically, Bonchon could take action against a franchisee who fails to disclose this information, as it relates to their obligations under the Franchise Agreement or the operation of the Bonchon business. This could potentially lead to the termination of the franchise agreement.
It is important for prospective Bonchon franchisees to understand what constitutes a "High-Risk Person" according to Stripe's Restricted Business List and to ensure full transparency with Bonchon during the application and operation of the franchise. Failure to do so could have serious repercussions on their franchise agreement and business operations.