What are the requirements for designating an Operating Principal for a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
(or any affiliate). If you are licensed to operate more than one Bonchon Business, then you agree to devote such amount of your time and attention to the performance of your duties as is necessary for the proper and effective operation of each such Business.
You must designate an "Operating Principal" for your franchised Business. If you are an individual, then you must serve as Operating Principal and if you are an entity, you must designate an individual who either owns a majority interest in the franchised Business or, where there is no majority owner, who we otherwise approve of in writing. Before you designate the Operating Principal, 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 Operating Principal must have complete decision-making authority with regard to your franchised Bonchon Business and must have authority to in all respects act on your behalf under this Agreement. 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").
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, every franchisee must designate an Operating Principal for their franchised business. If the franchisee is an individual, they must serve as the Operating Principal. If the franchisee is a business entity, they must designate an individual who either owns a majority interest in the franchised business or, if there is no majority owner, someone Bonchon approves in writing.
Before designating the Operating Principal, the franchisee must identify the individual to Bonchon, provide information about their background, experience, and credentials, and secure Bonchon's prior written approval, which Bonchon will not unreasonably withhold or deny. The Operating Principal must have complete decision-making authority regarding the Bonchon franchised business and must have the authority to act on the franchisee's behalf under the Franchise Agreement.
The Operating Principal is the sole individual with whom Bonchon will communicate when they need to contact the franchisee. Either the Operating Principal or the franchisee must satisfy Bonchon's initial training requirements, as outlined in Section 7.02 of the FDD. Franchisees must notify Bonchon within five days of the death, disability, or termination of employment of their Operating Principal and must designate a successor within ten days. The successor Operating Principal must meet the credentials set forth in Bonchon's manuals and satisfy the initial training requirements.