Can the terms of the Bonchon Area Development Agreement be altered without affecting the obligations of the undersigned guarantors?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The undersigned hereby agree, furthermore, that without the consent of or notice to any of the undersigned and without affecting any of the obligations of the undersigned hereunder: (a) any term, covenant or condition of the Area Development Agreement may be amended, compromised, released or otherwise altered by Franchisor and Area Developer, and the undersigned do guarantee and promise to perform all the obligations of Area Developer under the Agreement as so amended, compromised, released or altered; (b) any guarantor of or party to the Area Development Agreement may be released, substituted or added; (c) any right or remedy under the Agreement, this Guarantee or any other instrument or agreement between Franchisor and Area Developer may be exercised, not exercised, impaired, modified, limited, destroyed or suspended; and, (d) Franchisor or any other person may deal in any manner with Area Developer, any of the undersigned, any party to the Area Development Agreement or any other person.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the terms of the Area Development Agreement can be altered without affecting the obligations of the guarantors. The guarantee provided by the undersigned remains in effect even if the agreement is amended.
Specifically, Bonchon and the Area Developer can amend, compromise, release, or otherwise alter any term, covenant, or condition of the Area Development Agreement without requiring consent from or providing notice to the guarantors. The guarantors continue to guarantee the performance of the Area Developer's obligations under the altered agreement. This also applies to the release, substitution, or addition of any guarantor or party to the Area Development Agreement.
Furthermore, Bonchon has the right to exercise, not exercise, impair, modify, limit, destroy, or suspend any right or remedy under the Area Development Agreement, the guarantee, or any other instrument or agreement between Bonchon and the Area Developer. Bonchon can also deal with the Area Developer, any of the guarantors, or any other party in any manner without affecting the guarantors' obligations. This ensures that the guarantee remains absolute, unconditional, and irrevocable, providing Bonchon with significant flexibility in managing the Area Development Agreement without jeopardizing the security provided by the guarantors.