What remedies is the non-breaching party entitled to seek for a material breach of Section 7 or Section 8 of the General Terms in the Bonchon agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to perform any of the acts or fail to deliver any of the notices required pursuant to the provisions of this Section 7 in a timely fashion, this will be a material and incurable breach of this Agreement which, unless we waive the breach, will entitle us to terminate this Agreement immediately on notice to you, with no opportunity to cure.
8. OUR DUTIES
8.01 Duties of Franchisor
So long as you are not in default of this Agreement or the Franchise Agreements, we will grant you the right and obligation to acquire and operate Bonchon franchises in the Development Territory and pursuant to the Development Schedule, upon the terms and subject to the provisions of this Agreement and the terms of each Franchise Agreement entered into between you and us and of all documents related to this Agreement and the Franchise Agreement, and to use solely and in connection with these Franchise Agreements the Bonchon System as it may be changed, improved, modified or further developed from time to time, in the Development Territory as defined in this Agreement and upon the terms and subject to the provisions of this Agreement and the terms of all documents related to this Agreement and the Franchise Agreements.
Pursuant to the Franchise Agreements and under their terms, we will offer and perform the training, instruction, assistance and other activities for which the Franchise Agreements provide.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee fails to perform any of the acts or deliver any of the notices required pursuant to Section 7 in a timely fashion, it will be considered a material and incurable breach of the agreement. Unless Bonchon waives the breach, Bonchon is entitled to terminate the agreement immediately upon notice to the franchisee, without any opportunity to cure the breach.
Section 8.01 outlines Bonchon's duties to the franchisee. So long as the franchisee is not in default of the agreement or the Franchise Agreements, Bonchon will grant the franchisee the right and obligation to acquire and operate Bonchon franchises in the Development Territory and pursuant to the Development Schedule. This is upon the terms and subject to the provisions of the agreement and the terms of each Franchise Agreement entered into between the franchisee and Bonchon and of all documents related to the agreement and the Franchise Agreement. Bonchon will also offer and perform the training, instruction, assistance and other activities for which the Franchise Agreements provide, pursuant to the Franchise Agreements and under their terms.
It is important for a prospective franchisee to understand what constitutes a breach of contract under Sections 7 and 8, as well as the remedies available to Bonchon. This will allow the franchisee to fully understand their obligations and the potential consequences of failing to meet those obligations. It is also important to understand Bonchon's obligations to the franchisee, and what remedies are available to the franchisee if Bonchon fails to meet those obligations.