What specific agreement outlines the Scheduled Opening Date that a Bonchon restaurant must meet to be eligible for incentives?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
- Continuing Royalty. The first paragraph of Section 5.02 of each franchise agreement signed pursuant to the Area Development Agreement and where the subject Restaurant opens and commences operations in accordance with the conditions set forth herein below will be amended to read as follows:
From the opening date of your Bonchon Restaurant and continuing through the end of your Bonchon Restaurant's first full twelve months of operations, you agree (subject to the terms and conditions of the Area Development Agreement Rider – 2025 Development Incentive Program which you have executed in connection with this Agreement) to pay us a weekly Continuing Royalty equal to 2.5% of your previous week's Gross Revenues, as defined in Section 5.05 ("Definition of Gross Revenue"). After your Restaurant's first full twelve months of operations and continuing through the remainder of the Initial Term of the Franchise Agreement, you agree to pay us a weekly Continuing Royalty equal to 5.0% of your previous week's Gross Revenues. The Continuing Royalty is solely in consideration of our granting you the franchise conferred by this Agreement and is not in exchange for any particular goods, services or assistance we may furnish you.
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- Conditions. Area Developer acknowledges, understands and expressly agrees that for Area Developer (or its approved franchisee affiliate, as applicable) to receive the incentives described in Section 2 and 3 of this Rider for a Restaurant development under the Area Development Agreement, each of the following conditions must be satisfied:
- a. The subject Restaurant opens to the general public and commences regular operations no later than its Scheduled Opening Date as reflected in Section 6.01 of the Area Development Agreement;
- b. Area Developer is in full compliance with the Area Development Agreement and all other agreements with Franchisor and its affiliates: and
c. Area Developer (and each of its approved franchisee affiliates) operating franchised Businesses pursuant to the Area Development Agreement or otherwise (each, an "Affiliate Franchisee") is in full compliance with its respective franchise agreements and all other agreements with Franchisor or its affiliates.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Area Development Agreement Rider – 2025 Development Incentive Program outlines the Scheduled Opening Date that a Bonchon restaurant must meet to be eligible for incentives. Specifically, to receive incentives under the Area Development Agreement, the restaurant must open to the general public and commence regular operations no later than its Scheduled Opening Date as reflected in Section 6.01 of the Area Development Agreement.
This condition is part of a broader set of requirements. The Area Developer must also be in full compliance with the Area Development Agreement and all other agreements with Bonchon and its affiliates. Additionally, the Area Developer (and each of its approved franchisee affiliates) operating franchised Businesses must be in full compliance with their respective franchise agreements and all other agreements with Bonchon or its affiliates.
For a prospective Bonchon franchisee, this means that adhering to the Scheduled Opening Date is crucial for accessing the financial incentives offered under the 2025 Development Incentive Program. Failure to meet this deadline, or any other compliance issues, could result in the loss of these incentives. The Scheduled Opening Date itself is specified in Section 6.01 of the Area Development Agreement, so franchisees should carefully review this section to understand their obligations and timelines.