Is Bonchon required to inspect a proposed new location for relocation?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not relocate the Restaurant without our previous written approval. You must pay us a Relocation Fee equal to 25% of our then-current Initial Franchise Fee, plus reimburse us for any reasonable costs we incur in considering your request, provided, however, you will not have to pay us a Relocation Fee or reimburse us for our costs in considering your request to relocate a Remote Kitchen Restaurant when such relocation occurs upon the natural expiration of the lease for your Restaurant Location. For the avoidance of doubt, you will be required to pay us a Relocation Fee and reimburse us for our costs in considering your request to relocate your Remote Kitchen Restaurant Location, if the lease for your Restaurant Location is terminated due to your default. We will grant approval if you are in compliance with the Franchise Agreement, you have paid all money owed to us and our affiliates, the proposed location meets our site selection criteria, and you comply with the lease requirements in the Franchise Agreement. We may, if we wish, inspect your proposed new location.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has the option, but is not required, to inspect a franchisee's proposed new location if the franchisee wishes to relocate their restaurant.
To relocate a Bonchon restaurant, a franchisee must first obtain written approval from Bonchon. The franchisee is also responsible for paying a relocation fee equal to 25% of the then-current initial franchise fee. Additionally, the franchisee must reimburse Bonchon for any reasonable costs incurred while Bonchon considers the relocation request. However, these fees are waived for Remote Kitchen Restaurants when the relocation occurs at the natural expiration of the lease, but they are required if the lease is terminated due to the franchisee's default.
Bonchon will grant relocation approval if the franchisee is in compliance with the Franchise Agreement, has paid all outstanding amounts to Bonchon and its affiliates, the proposed new location meets Bonchon's site selection criteria, and the franchisee complies with the lease requirements outlined in the Franchise Agreement. This process ensures that any relocation aligns with Bonchon's standards and protects the brand's interests.