What is the role of the Operating Principal in the assignment of a Bonchon franchise?

According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee wishes to assign their franchise, the proposed assignee and/or their Operating Principal must meet certain requirements. Specifically, the proposed assignee and/or their Operating Principal must attend and receive certification in safe food handling from a state-approved food safety program. They must also attend and successfully complete Bonchon's Initial Training Program or Partner Training Program before the assignment, as well as any other training that Bonchon reasonably requires. Each individual undergoing such training must first execute a Confidentiality/Non-Competition Agreement. Bonchon may waive these requirements if the proposed assignee is one of their existing franchisees in good standing.

This means that the Operating Principal of the business entity that is seeking to acquire the Bonchon franchise must be prepared to undergo training to meet Bonchon's standards, unless the assignee is an existing franchisee. This ensures that whoever is in charge of the franchise operations is adequately trained and understands Bonchon's standards and procedures.

For a prospective franchisee looking to sell their Bonchon franchise, it's important to understand that the person designated as the Operating Principal by the potential buyer plays a key role in the assignment process. Bonchon needs to approve the Operating Principal, and the individual must fulfill the training requirements, which can impact the timeline and feasibility of the assignment. This requirement helps Bonchon maintain consistency and quality across its franchise network, even when ownership changes.