When can Bonchon provide notice that a Restaurant is leaving the Bonchon system?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You will have materially breached this Agreement and we may, at our option, terminate this Agreement and all rights granted under this Agreement, without giving you any opportunity to cure the breach, effective immediately upon your receipt of notice (which, whether sent by certified mail, registered mail, overnight courier or personal physical delivery, will be deemed to have been received by you upon delivery or first attempted delivery of the notice to you) upon the occurrence of any of the following events:
You do not open your Bonchon Restaurant for business within 300 days after the Effective Date of this Agreement or on or before the Scheduled Opening Date, whichever is earlier; cease operating the franchised Business; abandon the franchise relationship established under this Agreement; or, fail to operate your Bonchon Restaurant for two consecutive days, or three individual days within a twelve month period, during which you are required to operate it under this Agreement, unless your failure to operate is due to force majeure (as defined in Section 20.01).
You omitted or misrepresented any material fact in the information that you furnished to us in connection with our decision to enter into this Agreement.
We and you agree in writing to terminate the Franchise Agreement.
You do not secure the Restaurant Location for the franchised Business within the time limits and following the procedures specified in Article 6 of this Agreement.
You lose the right to possession of the Restaurant Location, provided that if the loss of possession results from the government's exercise of the power of eminent domain, or if, through no fault of yours, the premises are damaged or destroyed, then you will have thirty days after this event to apply for our approval to relocate your Bonchon Restaurant in accordance with the relocation provisions of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can terminate the Franchise Agreement with immediate notice under specific circumstances, without providing an opportunity for the franchisee to correct the issue. This notice is effective immediately upon the franchisee's receipt, whether delivered by certified mail, registered mail, overnight courier, or personal delivery, with receipt deemed to occur upon the first delivery attempt.
Bonchon may terminate the agreement if the franchisee does not open their Bonchon Restaurant within 300 days after the agreement's effective date or by the Scheduled Opening Date (whichever is earlier), ceases operating the business, abandons the franchise, or fails to operate the restaurant for two consecutive days or three days within a year, unless due to force majeure. Termination can also occur if the franchisee misrepresented any material fact during the application process, if both parties agree to terminate the agreement in writing, or if the franchisee fails to secure the Restaurant Location within the specified time frame.
Additionally, Bonchon can terminate the agreement if the franchisee loses the right to possess the Restaurant Location. However, if this loss is due to eminent domain or premises damage through no fault of the franchisee, the franchisee has 30 days to apply for approval to relocate the Bonchon Restaurant. These terms highlight the importance of meeting deadlines, maintaining continuous operation, and providing accurate information to Bonchon to avoid immediate termination of the franchise agreement.