What are the requirements for designating a General Manager for a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ment. Your Operating Principal is the sole individual with whom we will be required to communicate when we seek to communicate with you. Either the Operating Principal and/or you must satisfy our initial training requirements pursuant to Section 7.02 hereof.
If an individual, you must either serve as or designate a "General Manager" for your franchised Business. If you are an individual, then you may serve as General Manager. If you are an entity, then your Operating Principal must serve as or designate a General Manager. If your Operating Principal will have on-site management responsibility over the Restaurant's daily operation on a full-time basis, then we will consider your Operating Principal to be the General Manager. Before designating and engaging the services of the General Manager, you must identify such individual to us; furnish information to us regarding the candidate's background, experience and credentials; and, secure our prior written approval of the candidate, which we will not unreasonably withhold or deny. Your General Manager, who will have full-time day-to-day management responsibility for your Bonchon Business, will exercise on-premises supervision and personally participate in the direct operation of the Business. Your General Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.
Additionally, you must employ a second full-time manager to serve as your manager (the "Manager"). Your Manager will also have day-to-day management responsibility for your Bonchon Business, and will exercise on-premises supervision and personally participate in the direct operation of the Business. You Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.
If this Agreement is for the opening of your (or your affiliates, collectively with you) third Bonchon Business, then you must designate an "Area Manager" to us in writing prior to opening your third Bonchon Business, who will oversee the operations of each Bonchon Restaurant that you and/or your affiliates own and operate. The Area Manager must be certified to manage multi-unit operations. Your Area Manager must secure the requisite certifications and attend and successfully complete the training that we prescribe in Section 7.02 above. The requirement to designate an Area Manager
prior to the opening of your third Bonchon Business applies whether the development of your third Bonchon Business is (i) pursuant to the Development Schedule in Section 6.01 of your (or your affiliate's) Area Development Agreement, (ii) the result of you (or your affiliates) entering into separate unrelated unit franchise agreements with us, (iii) the result of your (or your affiliates') acquisition of existing Bonchon Businesses, or (iv) the result of some combination of the foregoing.
If the franchisee is a business entity, neither the General Manager, the Area Manager nor the Manager need have an equity interest in the franchisee entity.
You must immediately notify us within five (5) days upon the death, disability or termination of employment of your Operating Principal, General Manager, Manager or Area Manager, for any cause or reason. You must designate a successor or acting Operating Principal General Manager, Manager or Area Manager, as applicable, promptly and, in any event, no later than ten (10) days following the death, disability or termination of the predecessor Operating Principal, General Manager, Manager or Area Manager, as applicable. Each successor Operating Principal, General Manager and Area Manager must possess those credentials set forth in our Manuals. Each successor Operating Principal, General Manager, Manager or Area Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof (if such successor Operating Principal, General Manager, Manager or Area Manager has not already done so) and each successor Operating Principal, General Manager, Manager and Area Manager, as applicable, must attend and successfully complete such other reasonable training at such times as we may specify, all at your expense. The failure to employ and train (as applicable) a successor Operating Principal, General Manager, Manager or Area Manager will constitute a material breach of this Agreement.
8.08 Requirements Concerning Products and Services
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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 an individual, they must either serve as or designate a General Manager for their franchised business. If the franchisee is an entity, the Operating Principal must serve as or designate a General Manager. If the Operating Principal has on-site management responsibility over the Restaurant's daily operation on a full-time basis, Bonchon will consider that person to be the General Manager.
Before designating a General Manager, the franchisee must identify the individual to Bonchon, provide information regarding their background, experience, and credentials, and secure Bonchon's prior written approval, which Bonchon will not unreasonably withhold or deny. The General Manager will have full-time day-to-day management responsibility for the Bonchon business, exercise on-premises supervision, and personally participate in the direct operation of the business. The General Manager must also satisfy Bonchon's initial training requirements.
In addition to a General Manager, the franchisee must also employ a second full-time manager to serve as a Manager, who will also have day-to-day management responsibility, exercise on-premises supervision, and personally participate in the direct operation of the business. This Manager must also satisfy Bonchon's initial training requirements. Furthermore, if the agreement is for the opening of the franchisee's (or their affiliates') third Bonchon Business, then they must designate an Area Manager in writing prior to opening their third Bonchon Business, who will oversee the operations of each Bonchon Restaurant that they and/or their affiliates own and operate. The Area Manager must be certified to manage multi-unit operations and must secure the requisite certifications and attend and successfully complete the training that Bonchon prescribes.
The franchisee must immediately notify Bonchon within five days upon the death, disability, or termination of employment of their Operating Principal, General Manager, Manager, or Area Manager, for any cause or reason. A successor or acting Operating Principal, General Manager, Manager, or Area Manager, as applicable, must be designated promptly, no later than ten days following the death, disability, or termination of the predecessor. Each successor must possess the credentials set forth in Bonchon's Manuals and satisfy the initial training requirements, attending any other reasonable training Bonchon specifies, all at the franchisee's expense. Failure to employ and train a successor will constitute a material breach of the Franchise Agreement.