factual

What responsibility must Bonchon's representative have within the business?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

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

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, if the franchisee is an individual, they must serve as or designate a "General Manager" for their franchised business. If the franchisee is a business entity, their Operating Principal must serve as or designate a General Manager. If the Operating Principal manages the Restaurant's daily operation full-time, Bonchon will consider them the General Manager.

Before a franchisee can designate a General Manager, they must provide Bonchon with the candidate's background, experience, and credentials and receive Bonchon's written approval, which Bonchon will not unreasonably withhold. The General Manager will have full-time, day-to-day management responsibility for the Bonchon business, including on-premises supervision and direct participation in the business's operation. The General Manager must also meet Bonchon's initial training requirements.

In addition to the General Manager, the franchisee must employ a second full-time manager, referred to as the "Manager," who also has day-to-day management responsibilities, including on-premises supervision and direct participation in the business. The Manager must also satisfy Bonchon's initial training requirements. If the franchisee (or their affiliates) opens a third Bonchon Business, they must designate an "Area Manager" to oversee the operations of each Bonchon Restaurant owned and operated by them and/or their affiliates. The Area Manager must be certified to manage multi-unit operations and must complete the training prescribed by Bonchon.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.