What is a prohibited action regarding the lease of a Bonchon Restaurant location?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you will be leasing the Restaurant Location(s) of your Bonchon Restaurant(s), then promptly following our written approval of each proposed Restaurant Location, you must utilize a real estate broker we approve and obtain a lease or sublease for the Restaurant Location which, unless we otherwise approve the lease in advance, must be accompanied by a rider substantially in the form of Exhibit E of this Agreement. You agree to deliver to us a copy of any proposed lease or sublease for the Restaurant Location and any related documents (collectively, the "Lease") before you execute the Lease. Any Lease will be subject to our advance written approval, which we will not
unreasonably withhold or delay, provided, however, that we expressly reserve the right to disapprove any Lease not accompanied by a rider embracing all of the provisions of Exhibit C. If we do not communicate our approval or disapproval of a proposed Lease to you within twenty business days following our receipt of the proposed Lease, then the Lease will be considered and deemed to be disapproved.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee is prohibited from executing a lease for a Bonchon Restaurant location before Bonchon provides written approval. The franchisee must first utilize a real estate broker approved by Bonchon and obtain a lease or sublease that includes a rider substantially in the form of Exhibit C of the Franchise Agreement, unless Bonchon approves the lease in advance without this rider.
Before executing any lease, the franchisee must provide Bonchon with a copy of the proposed lease and all related documents. Bonchon has the right to disapprove any lease that does not include the specified rider. However, Bonchon agrees not to unreasonably withhold or delay its approval of a lease, provided that the lease includes the required rider.
If Bonchon fails to communicate its approval or disapproval within twenty business days of receiving the proposed lease, the lease will be considered disapproved. This requirement ensures that Bonchon maintains control over the location and lease terms of its franchised restaurants, protecting its brand and operational standards. Franchisees must adhere to this process to avoid violating the Franchise Agreement.