Does Bonchon have a right of first refusal to purchase a Bonchon business?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon does have a right of first refusal to purchase a franchisee's business. Specifically, Section 14.06 of the Franchise Agreement states that Bonchon can match any offer for the business, giving them the first opportunity to buy it. This right is subject to state law, meaning the enforceability of this provision may vary depending on the franchisee's location.

This right of first refusal is a significant consideration for prospective Bonchon franchisees. If a franchisee decides to sell their business, they must first offer Bonchon the opportunity to purchase it on the same terms as any third-party offer. This could potentially delay or complicate the sale process, as the franchisee must wait for Bonchon to decide whether to exercise its right.

However, it could also be seen as a benefit. Bonchon's involvement might provide a degree of assurance to potential buyers, knowing that the franchisor has already vetted the business. Additionally, if Bonchon chooses to purchase the business, the franchisee may benefit from a smoother transition and potentially favorable terms. Franchisees should carefully consider the implications of this right of first refusal and how it might affect their ability to sell their Bonchon business in the future.