During the term of the Bonchon agreement, are franchisees permitted to enter into any agreements that conflict with the execution or performance of the Bonchon Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In any Lease, you may not create any obligations or grant any rights against us or our affiliates or agree to any term, condition or covenant which is inconsistent with this Agreement or any related agreement. You agree to timely perform all terms, conditions, covenants and obligations under the Lease. You may not assign, transfer or encumber your Lease or sublet all or any part of the Location without our advance written approval.
You must provide to us a copy of each executed lease with all exhibits, attachments, and addenda before each Due Date of Execution of Lease in Section 6.01.
If you fail to perform any of the acts or fail to deliver any of the notices required pursuant to the provisions of this Section 7 in a timely fashion, this will be a material and incurable breach of this Agreement which, unless we waive the breach, will entitle us to terminate this Agreement immediately on notice to you, with no opportunity to cure.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are restricted from entering into agreements that conflict with the Bonchon Franchise Agreement. Specifically, in any lease agreement, a franchisee cannot create obligations or grant rights against Bonchon or its affiliates, nor can they agree to terms, conditions, or covenants inconsistent with the Franchise Agreement or any related agreement.
This restriction ensures that the franchisee's obligations and operations remain aligned with Bonchon's standards and policies. It prevents franchisees from entering into lease agreements or other contracts that could compromise Bonchon's interests or create conflicting obligations. Franchisees must also provide Bonchon with a copy of each executed lease, including all exhibits, attachments, and addenda, before the due date of execution of the lease.
Failure to comply with these requirements constitutes a material and incurable breach of the Franchise Agreement, potentially leading to immediate termination of the agreement if Bonchon does not waive the breach. This provision underscores the importance of adhering to Bonchon's guidelines and obtaining their approval for any agreements related to the franchise operation, particularly concerning lease arrangements.