Is a proposed assignee of a Bonchon franchise required to present themselves for a personal interview with Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not sell or otherwise assign or transfer all or any interest in you (if you are a business entity), the franchise conferred by this Agreement, your franchised Business, your Bonchon Restaurant, your right to use the Bonchon System, Proprietary Marks, Confidential Information and/or Manuals, or any interest in any of these, to a third party without our prior written consent. If we do not elect to exercise our right of first refusal (as provided in Section 14.06 below), which right shall not apply in the event that the assignee is a member of your immediate family, then we will not unreasonably withhold consent to the assignment and sale. You agree that it will not be unreasonable for us to impose, among other requirements, the following conditions to granting consent to the proposed assignment and sale:
- A. That the proposed assignee (meaning all individuals and entities which, after the proposed sale, transfer or assignment, will be franchisees under this Agreement or under any successor agreement) applies to us for acceptance as a franchisee, and furnishes to us the information and references that we request to determine the proposed assignee's skills, qualifications, financial condition, background and history, reputation, economic resources, education, managerial and business experience, moral character, credit rating and ability to assume your duties and obligations under this Agreement and any related agreement. You must pay the costs of any such investigation conducted by us.
- B. That the proposed assignee (or, if an entity, each and every owner or guarantor of the proposed assignee) presents itself for a personal interview at our corporate office, or any other location we designate, at the date and time we reasonably request, without expense to us. We may determine to meet with your proposed assignee at his, her or its principal
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a proposed assignee of a Bonchon franchise is required to present themselves for a personal interview. Specifically, the proposed assignee (or each owner/guarantor if the assignee is an entity) must attend a personal interview at Bonchon's corporate office or another designated location. This interview will be at the assignee's expense, with the date and time determined reasonably by Bonchon. Bonchon may choose to meet the proposed assignee at their place of business or residence. If Bonchon chooses to do so, the current franchisee will reimburse Bonchon for all travel, lodging, meal, and personal expenses related to the meeting.
This requirement ensures that Bonchon can assess the proposed assignee's qualifications, skills, and suitability to operate the franchise. The personal interview allows Bonchon to evaluate the assignee's background, experience, and financial condition, ensuring they meet Bonchon's standards. This is a common practice in franchising, as franchisors want to ensure that new franchisees are capable of maintaining the brand's reputation and operational standards.
The FDD also states that the proposed assignee must apply for acceptance as a franchisee and provide all requested information and references. This information helps Bonchon determine the assignee's skills, qualifications, financial condition, background, history, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and ability to assume the current franchisee's duties and obligations. The current franchisee is responsible for covering the costs of any investigation Bonchon conducts on the proposed assignee.
In addition to the interview and information submission, the proposed assignee may also be required to attend and successfully complete Bonchon's Initial Training Program or Partner Training Program, as well as any other training Bonchon reasonably requires, all at the assignee's expense. This training ensures that the new franchisee is properly trained in Bonchon's operating procedures and standards. The proposed assignee must also execute a Confidentiality/Non-Competition Agreement. Bonchon may waive these requirements if the proposed assignee is an existing franchisee in good standing.