What recourse does a Bonchon franchisee have if they lose possession of the Restaurant Location due to no fault of their own?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement* | Summary |
|---|---|---|
| ii. You default under any agreement between you and the landlord of | ||
| your Restaurant Location and do not cure within the time provided in | ||
| the lease. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
The 2025 Bonchon Franchise Disclosure Document does not explicitly detail the recourse a franchisee has if they lose possession of their restaurant location through no fault of their own. The document does outline various scenarios that could lead to termination of the franchise agreement, including franchisee default under the lease agreement with the landlord.
Item 17 outlines various provisions regarding termination, transfer, and dispute resolution, but it does not specifically address involuntary loss of the restaurant location. The document does state under section ii. that the Franchise Agreement can be terminated if the franchisee defaults under any agreement between them and the landlord of their Restaurant Location and do not cure within the time provided in the lease.
Prospective Bonchon franchisees should seek clarification from Bonchon regarding the protections or assistance offered if a restaurant location is lost due to circumstances beyond the franchisee's control, such as eminent domain, natural disasters, or landlord default. Understanding Bonchon's policy on this matter is crucial for assessing the risks associated with the franchise investment.