Does Bonchon require a lease rider as part of the franchise agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you will be leasing the Restaurant Location of your Bonchon Restaurant, then promptly following our written approval of your proposed Restaurant Location, you will be required to utilize a real estate broker we approve and obtain a lease or sublease for the Restaurant Location which, unless we otherwise approve the lease in advance, must be accompanied by a rider substantially in the form of Exhibit C of this Agreement. You agree to deliver to us a copy of any proposed lease or sublease for the Restaurant Location and any related documents (collectively, the "Lease") before you execute the Lease. Any Lease will be subject to our advance written approval, which we will not unreasonably withhold or delay, provided, however, that we expressly reserve the right to disapprove any Lease not accompanied by a rider embracing all of the provisions of Exhibit C. If we do not communicate our approval or disapproval of a proposed Lease to you within twenty business days following our receipt of the proposed Lease, then the Lease will be considered and deemed to be disapproved.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon requires a lease rider as part of the franchise agreement. Specifically, if a franchisee will be leasing the restaurant location, they must obtain a lease or sublease that includes a rider substantially in the form of Exhibit C of the Franchise Agreement, unless Bonchon approves the lease in advance without the rider. Bonchon retains the right to disapprove any lease that does not include a rider embracing all the provisions of Exhibit C.
This requirement ensures that Bonchon maintains control over certain aspects of the leased premises and protects its brand standards. The lease rider typically addresses issues such as the landlord's acknowledgment of the tenant's responsibilities, modifications to the lease, Bonchon's right to enter the premises for repairs or to remove trade dress, and the precedence of the rider's terms over the lease in case of conflicts. Bonchon must provide written approval of the proposed lease and any related documents before the franchisee executes the lease.
The FDD states that if Bonchon does not communicate its approval or disapproval of a proposed lease within twenty business days following receipt, the lease will be considered disapproved. This clause emphasizes the importance of timely communication and adherence to Bonchon's requirements during the lease negotiation process. Franchisees should factor in this review period when planning their restaurant location and lease execution timeline.
If the lease is not executed because the landlord withdraws from negotiations, Bonchon will cover the architectural fees owed to the Architect of Record (AOR) to date. However, if the franchisee refuses to personally guarantee the lease or comply with a reasonable request from the landlord, the franchisee will be responsible for the AOR's fees, provided the rent is at or below market rate and the total development cost falls within the range listed in Item 7 of the FDD.