What skills, qualifications, and conditions must a Bonchon transferee demonstrate to be approved?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Agreement* | Summary |
|---|---|---|
| b. Transferee must come to personal interview, or we may meet with | ||
| transferee at his, her or its business or residence, and if we do you must | ||
| reimburse us for our travel, lodging, meal and personal expenses. | ||
| c. | ||
| Transferee (or, if a business entity, the principals of the proposed | ||
| transferee) must demonstrate the skills, qualifications, financial | ||
| condition, background and history, reputation, economic resources, | ||
| education, managerial and business experience, moral character, credit | ||
| rating and ability necessary, in our reasonable judgment, to assume | ||
| your duites and obligations under the Franchise Agreement and conduct | ||
| the Business. | ||
| d. | ||
| Transferee has the organizational, managerial and financial | ||
| structure, financial resources and capital required to conduct the | ||
| franchised Business. | ||
| e. Transferee complies with our ownership requirements relative to the | ||
| control of the proposed assignee and the franchised Business. | ||
| f. | ||
| Transferee and/or his/her/its proposed Operating Principal must | ||
| attend and receive certification in safe food handling from a state | ||
| approved food safety program and attend and successfully complete | ||
| Initial Training Program or Partner Training Program (as applicable) | ||
| before assignment (and other training if we wish), at transferee's | ||
| expense. | ||
| g. The landlord of the Restaurant Location must consent in writing to | ||
| the assignment of lease. | ||
| h. | ||
| You must have cured any existing defaults, fully comply with all | ||
| obligations to us and satisfy your outstanding monetary obligations to | ||
| third parties. | ||
| i. Transferee must sign new Franchise Agreement (but need not pay | ||
| another Initial Franchise Fee). The term of the new Franchise | ||
| Agreement will be the balance of your Franchise Agreement. | ||
| j. Transferee must have acquired, or will be able to immediately acquire | ||
| following the signing of the new Franchise Agreement, all permits, | ||
| licenses and other authorizations legally necessary to operate Business. | ||
| k. You remain fully liable and responsible for all of your obligations to | ||
| us and our affiliates under Franchises Agreement which arose in | ||
| connection with the operation of your franchised Business prior to the | ||
| effective date of the transferee's new Franchise Agreement. | ||
| l. The Total Sales Price may not be so excessive, in our determination, | ||
| that it jeopardizes the continued economic viability and future operations | ||
| of the franchised Business and/or the transferee. See Franchise | ||
| Agreement for definition of "Total Sales Price." | ||
| m. | ||
| Transferee (and, if the transferee is a business entity, each and | ||
| every owner or guarantor of the transferee) comply with our restrictions | ||
| relative to involvement in any business which competes with the | ||
| franchised Business. | ||
| n. If you or your owners finance any part of the purchase price, then all | ||
| of your obligations under promissory notes, loan agreements, or security | ||
| interests reserved in the Restaurant are subordinate to the transferee's | ||
| obligation | ||
| to | ||
| pay | ||
| Continuing | ||
| Royalties, | ||
| System | ||
| Brand | ||
| Fund | ||
| Contributions, and all other amounts due to us, our affiliates, and third | ||
| party vendors and otherwise to comply with the Franchise Agreement. | ||
| o. If transferee is a business entity, owners must sign guarantees and | ||
| confidentiality/ non-competition agreements. | ||
| p. You and your owners must sign a general release. | ||
| q. | ||
| If the transferee is a business entity, all of the requirements of its new | ||
| Franchise Agreement concerning business entities must be complied | ||
| with before we sign the new Franchise Agreement and must continue to | ||
| be complied with. | ||
| r. | ||
| You must give us copies of the proposed assignment contract and | ||
| signed assignment contract. | ||
| s. | ||
| You must arrange an inspection of the Bonchon Restaurant prior to |
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, a potential transferee must meet several conditions to be approved. The transferee, or the principals of the transferee if it's a business entity, must demonstrate the necessary skills, qualifications, financial condition, background, history, reputation, economic resources, education, managerial and business experience, moral character, credit rating, and overall ability to fulfill the obligations under the Franchise Agreement and successfully operate the Bonchon business. The transferee also needs to show that they have the appropriate organizational, managerial, and financial structure, resources, and capital required to manage the franchised business effectively.
Additionally, the transferee must comply with Bonchon's ownership requirements regarding control of the assignee and the franchised business. The transferee, along with their proposed Operating Principal, must attend and receive certification in safe food handling from a state-approved program. They also need to attend and successfully complete the Initial Training Program or Partner Training Program, as applicable, at their own expense, and any other training Bonchon requires. The landlord of the Restaurant Location must provide written consent to the lease assignment.
Furthermore, the transfer can only occur if the existing franchisee has cured any existing defaults, fully complied with all obligations to Bonchon, and satisfied their outstanding monetary obligations to third parties. The transferee must sign a new Franchise Agreement, although they are not required to pay another Initial Franchise Fee, and the term of the new agreement will be the balance of the original Franchise Agreement. The transferee must also acquire all legally necessary permits, licenses, and authorizations to operate the Business immediately after signing the new Franchise Agreement. The total sales price must not be so high that it jeopardizes the economic viability of the franchised business. Finally, the transferee must comply with Bonchon's restrictions regarding involvement in any competing businesses, and if the transferee is a business entity, its owners must sign guarantees and confidentiality/non-competition agreements.