Which sections of the Bonchon Franchise Agreement detail the franchisee's obligations regarding pre-opening purchases and leases?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Section 18.15, Exhibit E | Item 15 |
Franchise Agreement
| Obligation | Section in Franchise Agreement | Disclosure Document Item |
|---|---|---|
| a. Site selection and | Article 6 of Franchise Agreement, | Items 7 and 11 |
| acquisition/lease | Exhibit A and Exhibit C | |
| b. Pre-opening purchases/leases | Sections 6.02, 6.03, 8.08, 8.09 and | Items 6, 7, 8 |
| 9.01 of Franchise Agreement | and 11 | |
| c. |
Source: Item 9 — FRANCHISEE'S OBLIGATIONS (FDD pages 42–45)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisee obligations regarding pre-opening purchases and leases are detailed in specific sections of the Franchise Agreement. These sections are 6.02, 6.03, 8.08, 8.09, and 9.01. These obligations are further discussed in Items 6, 7, 8, and 11 of the disclosure document.
These sections likely outline what Bonchon requires franchisees to purchase or lease before opening their location. This could include equipment, initial inventory, furniture, fixtures, and other necessary items to start operations. The agreement probably specifies approved suppliers, minimum quality standards, and procedures for acquiring these items.
Understanding these obligations is crucial for prospective franchisees as these pre-opening expenses can significantly impact the initial investment. Franchisees should carefully review these sections to understand the full scope of required purchases and leases, as well as any restrictions or requirements imposed by Bonchon. It is also important to note that the Area Development Agreement does not contain any obligations regarding pre-opening purchases/leases.