factual

For a standard Bonchon restaurant, how many days do I have from the Effective Date of the Franchise Agreement to select a Restaurant Location and obtain Bonchon's advance written approval?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

It is of the essence of this Agreement that you select a Restaurant Location and obtain our advance written approval for your Restaurant Location within 90 days following the Effective Date of this Agreement and that you sign a lease approved by us (or provide proof of ownership or an executed contract of sale) for your Restaurant Location within 120 days following the Effective Date of this Agreement. If you will be operating a Remote Kitchen Restaurant, then you must select a Restaurant Location and obtain our advance written approval for your Restaurant Location within 60 days following the Effective Date of this Agreement and that you sign a lease approved by us (or provide proof of ownership or an executed contract of sale) for your Restaurant Location within 90 days following the Effective Date of this Agreement. If you do not secure a Restaurant Location within the time limits and following the procedures specified in this Section 6.01, then this failure will be a material and incurable breach of this Agreement which, unless we waive the breach, will entitle us to terminate this Agreement immediately upon notice to you, with no opportunity to cure. If we terminate the Agreement for this reason, then all funds you paid us will be considered earned by us; we will not refund to you any portion of the Initial Franchise Fee; and you shall immediately execute our then-current form of General Release running in favor of us and our affiliates.

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, a prospective franchisee has 90 days from the Effective Date of the Franchise Agreement to select a restaurant location and receive Bonchon's advance written approval. However, this 90-day period applies to standard Bonchon restaurants.

If the franchisee intends to operate a Remote Kitchen Restaurant, the timeframe to select a location and obtain Bonchon's approval is shorter, at 60 days from the Effective Date of the Agreement.

Failure to secure a location within these specified timeframes constitutes a material breach of the agreement, potentially leading to termination by Bonchon. If Bonchon terminates the agreement due to the franchisee's failure to secure a location in time, the initial franchise fee will not be refunded. This highlights the importance of diligent site selection within the given timeframe.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.