Does Bonchon reserve the right to review and approve the terms of any security agreement related to a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ater of: (i) sixty (60) days following your receipt of our notice to you; (ii) the closing period (if any) specified in the subject offer; or, (iii) such longer period as may be necessary to conduct the due diligence provided for above. You agree to take all action necessary to assign your lease agreement with the lessor of your Bonchon Restaurant Location to us.
- G. If we elect not to exercise our right of first refusal and we consent to the proposed assignment or redemption, then you will, subject to the provisions of this Article, be free to assign this Agreement or the franchised Business to your proposed assignee on the terms and conditions specified in the notice if you satisfy the conditions of Section 14.04 for our approval of an assignment and if you close the transaction within sixty days (or such further time as may be stipulated by law, rule or regulation). If, however, the terms specified in your notice are changed, the changed terms will be considered a new offer, and we will have an identical right of first refusal with respect to this new offer. Further, if you fail to close the assignment transaction within sixty days (or such further period of time as may be stipulated by applicable law, rule or regulation), then our right of first refusal hereunder shall be restored and we may elect to exercise same within thirty days thereafter.
- H.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, Bonchon maintains certain rights regarding security interests related to the franchise. Specifically, Bonchon retains a right of first refusal if a franchisee seeks to assign the franchise agreement or the franchised business. If the franchisee intends to assign their agreement, Bonchon has the first right to take over the agreement under the same terms.
If Bonchon chooses not to exercise its right of first refusal and consents to the assignment, the franchisee is free to assign the business, provided they meet specific conditions for approval. These conditions are outlined in Section 14.04 of the agreement. However, if the terms of the proposed assignment change, Bonchon retains the right of first refusal regarding the new offer.
Bonchon's decision not to exercise its right of first refusal in one instance does not affect its right to do so in subsequent offers. Furthermore, even if Bonchon doesn't exercise its right of first refusal, this does not automatically mean they approve of the proposed new owner or the transaction itself. Both the franchisee and any potential new owner must still meet all criteria for assigning the franchise as detailed in Article 14 of the Franchise Agreement. These stipulations ensure Bonchon retains control over who operates a franchise and under what terms the business can be transferred.