Does Bonchon require that the Participating Franchisee possess the legal authority to bind its outlets, franchisees, and licensees to the terms and conditions of the agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If you are a business entity (including a corporation, limited liability company, general partnership or limited partnership), you are organized under the laws of the state of your principal place of business (or another state which you have identified to us) and your business entity is in good standing with and qualified to do business in each state and political/governmental subdivision having jurisdiction over your franchised area business hereunder.
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- If you are business entity, you have all requisite power and authority to execute, deliver, consummate and perform all of your obligations under this Agreement, and all necessary business entity proceedings have been duly taken to authorize the execution, delivery and performance of this Agreement. This Agreement has been duly authorized, executed and delivered by you, includes your legal, valid and binding
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee is a business entity, they must possess the legal authority to execute, deliver, and perform their obligations under the Franchise Agreement. This means the business entity must be in good standing and qualified to do business in the relevant state or jurisdiction. Bonchon requires that all necessary business entity proceedings have been duly taken to authorize the execution, delivery, and performance of the agreement.
This requirement ensures that Bonchon is dealing with a legally sound entity capable of fulfilling its contractual obligations. It protects Bonchon by confirming that the franchisee has the power and authority to enter into the agreement and that the agreement is legally binding.
For a prospective Bonchon franchisee, this means that if you plan to operate your franchise through a corporation, LLC, partnership, or other business entity, you must ensure that the entity is properly organized and authorized to conduct business. You'll need to confirm that all internal approvals and filings have been completed to grant the entity the power to enter into the Franchise Agreement. Failure to meet this requirement could delay or prevent the approval of your franchise application.