Which section of the Bonchon Franchise Agreement covers the topic of 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, these sections outline the conditions under which a franchisee can enter into two consecutive Successor Franchise Agreements, each with a term of five years.
This means that a Bonchon franchisee, after the initial franchise term, has the opportunity to extend their business operation by applying for successor agreements. These agreements, if granted, provide an additional ten years of operation (two terms of five years each).
However, the FDD states that these extensions are not automatic. The franchisee must comply with specific conditions to qualify for a Successor Term. While the summary indicates that these conditions exist, the exact requirements are not detailed in this section of the FDD. A prospective franchisee should carefully review Sections 4.02 and 13.01 of the Franchise Agreement to fully understand the conditions required for obtaining a Successor Franchise Agreement and discuss any concerns with Bonchon prior to signing the agreement.