What specific records can Bonchon inspect and audit at my Bonchon Restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
We and/or our agents (who may be outside accountants and auditors), designees and/or employees will have the right, at any time, with or without written notice, during normal business hours, to enter your Bonchon Restaurant and any other premises from which the Business is conducted, in a fashion calculated not to disrupt your Restaurant's and Business's operations, to inspect, audit and make copies of all records including, but not limited to, the following: books of accounts; bank statements; cash or other receipts; checkbooks; documents; records; sales and income tax returns (federal, state, foreign and, if applicable, city); and, your files relating to programs, services and products sold, business transacted and expenditures relating to the Business. These files must include (without limitation) your operating records; bookkeeping and accounting records; customer lists; customer job orders; operating records; operating reports; correspondence; general
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has extensive rights to inspect and audit a franchisee's records. Bonchon, or its agents, can enter the Bonchon Restaurant and any other premises where the business is conducted to inspect, audit, and copy various records. This can occur at any time during normal business hours, with or without written notice, and should be conducted in a way that doesn't disrupt the restaurant's operations.
The specific records Bonchon can inspect and audit include books of accounts, bank statements, cash or other receipts, checkbooks, documents, records, sales and income tax returns (federal, state, foreign, and city if applicable), and files relating to programs, services, products sold, business transacted, and expenditures related to the business. These files must include operating records, bookkeeping and accounting records, customer lists, customer job orders, operating reports, correspondence, and general files.
Bonchon's broad audit rights underscore the importance of maintaining accurate and complete records. Failure to maintain required records is considered a material and incurable breach of the franchise agreement, potentially leading to immediate termination without an opportunity to correct the issue. This level of scrutiny is typical in franchising, as the franchisor needs to ensure brand standards and accurate royalty payments across all locations.