Must a proposed Bonchon franchisee comply with Bonchon's ownership requirements?

According to Bonchon's 2025 Franchise Disclosure Document, a proposed assignee must comply with Bonchon's ownership requirements relative to the control of the proposed assignee and the franchised Business. This means that if a franchisee wants to sell or transfer their Bonchon franchise to someone else, the person or entity taking over the franchise must meet Bonchon's standards for who can own and control the business.

Bonchon also requires that if the franchisee is a business entity with more than two individuals involved, each individual must maintain the same proportionate ownership interest in the new entity as they had in the franchised business before the assignment. Furthermore, both the franchisee and the business entity must sign an agreement making them jointly and severally liable for all obligations to Bonchon. Each owner must also personally guarantee the business entity's performance and agree to be bound by the terms of the Franchise Agreement.

These requirements ensure that Bonchon maintains control over who operates its franchises and that all owners are committed to upholding the brand's standards. Additionally, Bonchon mandates that all organizational documents and ownership records of the business entity state that any transfer of interest is restricted by the terms of the Franchise Agreement and subject to Bonchon's prior written consent. This allows Bonchon to carefully vet potential new owners and maintain consistency across its franchise network.