What section of the Bonchon Area Development Agreement discusses Bonchon's approval of transfer by the franchisee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Area Development Agreement | Summary |
|---|---|---|
| l. Our approval of transfer by you | Section 12.02, 12.03 and 12.04 | No transfer without our consent except as provided in Area Development Agreement (for example, transfer to a business entity you form for convenience). (Subject to state law.) |
| m. Conditions for our | Sections 12.03 | See l., above. |
| approval of transfer | and 12.04 |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Section 12.02, 12.03, and 12.04 of the Area Development Agreement outline the provisions for Bonchon's approval of a transfer by the franchisee. These sections stipulate that a franchisee cannot transfer their agreement without Bonchon's consent, although there are exceptions, such as transferring to a business entity formed for convenience, subject to state law.
Sections 12.03 and 12.04 also relate to the conditions for Bonchon's approval of a transfer, as referenced in the summary. This means that franchisees need to carefully review these sections to understand the specific requirements and circumstances under which Bonchon will grant approval for a transfer.
It is important for prospective Bonchon franchisees to understand the conditions under which they can transfer their Area Development Agreement, as this can impact their exit strategy or ability to restructure their business. Franchisees should consult with legal counsel to fully understand the implications of these sections and how they apply to their specific situation.