Does the provided text specify the content of any section in the Bonchon Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
t contract. | | | | s. | | | | You must arrange an inspection of the Bonchon Restaurant prior to |
| Provision | Section in Franchise Agreement* | Summary |
|---|---|---|
| the transfer and pay our On-site Inspection Upon Transfer Fee. Either you or the transferee must, at your/its expense, upgrade the Bonchon Restaurant to conform with then-current standards and specifications within the time we reasonably specify. t. You must pay us a transfer fee of $15,000 or such greater amount as is necessary to reimburse us for our reasonable costs and expenses associated with the application for transfer. Notwithstanding the foregoing, there will be no transfer fee if the assignee is a member of your immediate family. \nu. You must correct any existing deficiencies of the Restaurant of which we have notified you. (Subject to state law.) | ||
| n. Our right of first | Section 14.06 | We can match any offer for your Business. (Subject to state law.) |
| refusal to purchase | ||
| your business | ||
| o. Our option to purchase your business | Section 19.01 | We have the option to buy your franchised Business's assets upon termination or expiration. (Subject to state law.) |
| p. Your death or disability | Section 14.05 | On your death or disability your rights pass to your "Estate". Your Estate may continue operating the Business if it provides an acceptable Operating Principal and General Manager. This Operating Principal must successfully complete our next Initial Training Program or Partner Training Program (as applicable) and assume full-time operation of the franchise within 1 month of your death or disability. From the date of your death or disability until an Operating Principal assumes full time control, we can operate your Business, but need not do so. See Item 6. Or, the Estate may sell the franchise in accordance with the requirements described in m. above. (Subject to state law.) |
|
Sections 12.02 | No involvement in competing business anywhere in U.S. (Subject to state law.) |
| covenants during the | ||
| term of the franchise | ||
| r. Non-competition | Section 12.02 | No competing business for 2 years within 20 miles of your Restaurant Location, or within 20 miles of any other franchised or company-owned Bonchon Business. (Subject to state law.) |
| covenants after the | ||
| franchise is terminated | ||
| or expires | ||
| s. Modification of the agreement | Sections 7.01, 27.01 | No oral modifications generally, but we may change the Manuals. Any Manuals change will not conflict with or materially alter your rights and obligations under the Franchise Agreement. |
| t. Integration/ merger clause | Section 26.01 | Only the terms of the Franchise Agreement, the Exhibits to the Franchise Agreement and all agreements signed with it are enforceable (subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Item 17 provides a summary of various provisions within the Franchise Agreement, along with the corresponding section numbers. This includes outlining Bonchon's right of first refusal to purchase the franchisee's business, as detailed in Section 14.06 of the Franchise Agreement. Bonchon also has the option to purchase the business assets upon termination or expiration of the agreement, as stated in Section 19.01.
The agreement also addresses the scenario of the franchisee's death or disability, covered in Section 14.05, which dictates how the rights pass to the franchisee's estate and the conditions for continued operation or sale of the franchise. Non-competition covenants during and after the franchise term are specified in Sections 12.02, restricting involvement in competing businesses.
Further, the document clarifies the terms for modifying the agreement in Sections 7.01 and 27.01, emphasizing that while Bonchon can change the manuals, these changes must not conflict with or materially alter the franchisee's rights and obligations. The integration/merger clause in Section 26.01 limits enforceability to the terms within the Franchise Agreement and its exhibits. Finally, the choice of forum for litigation is New York, as per Section 32.04, and New York law applies, according to Section 32.03, although this may be superseded by local state law.