What are the requirements for the Area Business Manager in the event of the death or disability of a Bonchon Area Development Agreement owner?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Area Development Agreement | Summary |
|---|---|---|
| l. Our approval of transfer by you | Section 12.02, 12.03 and 12.04 | No transfer without our consent except as provided in Area Development Agreement (for example, transfer to a business entity you form for convenience). (Subject to state law.) |
| m. Conditions for our | Sections 12.03 | See l., above. |
| approval of transfer | and 12.04 | |
| n. Our right of first | None | Not applicable. |
| refusal to purchase | ||
| your business | ||
| o. Our option to | None | Not applicable |
| purchase your business | ||
| p. Your death or disa- bility | Section 12.04 | On your death or disability (if you are an individual), or the death or disability of your last surviving owner (if you are a business entity), that person’s rights pass to his or her "Estate". The Estate may continue operating the Business if it provides an acceptable Area Business Manager. This Area Business Manager must assume full time operation of the franchise within 90 days of death or disability. (Subject to state law.) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, in the event of the death or disability of an Area Development Agreement owner, specific conditions apply regarding the continuation of the business. If the owner is an individual, or in the case of a business entity, the last surviving owner, their rights pass to their Estate.
The Estate is permitted to continue operating the Bonchon business, provided they can secure an acceptable Area Business Manager. This manager is required to assume full-time operational responsibilities for the franchise within 90 days of the owner's death or disability.
This stipulation ensures business continuity and adherence to Bonchon's operational standards even in unforeseen circumstances. It is important to note that these conditions are subject to state law, which may introduce additional requirements or variations.