Which section in the Bonchon Franchise Agreement addresses renewal?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement* | Summary |
|---|---|---|
| a. Length of the franchise term | Section 4.01 | Term of Franchise Agreement will commence on the effective date and expire 10 years from the day your Bonchon Restaurant commences operations. |
| b. Renewal or exten- sion of the term | Section 4.02, 13.01 | You can enter into two consecutive Successor Franchise Agreements for a term of five years each if you comply with the conditions for a Successor Term. |
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, the renewal or extension of the franchise term is addressed in Sections 4.02 and 13.01 of the Franchise Agreement. Specifically, a franchisee can enter into two consecutive Successor Franchise Agreements, each with a term of five years, if they meet the conditions for a Successor Term.
This means that while the initial franchise term for a Bonchon restaurant is 10 years from the commencement of operations, franchisees have the opportunity to extend their agreement for up to an additional 10 years through two separate renewal agreements. The FDD excerpt indicates that certain conditions must be met to qualify for a Successor Term, but it does not elaborate on what those conditions are.
Prospective franchisees should carefully review Sections 4.02 and 13.01 of the Bonchon Franchise Agreement to fully understand the requirements for renewal. This includes understanding the specific obligations, timelines, and any fees associated with securing a Successor Franchise Agreement. It is also advisable to discuss these conditions with the franchisor to gain clarity on what is expected to maintain eligibility for renewal.