What is the timeframe a Bonchon franchisee has to refurbish their restaurant if the required expenditure is more than $30,000?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ou submit all information that we need to evaluate your proposed general contractor. If we do not respond to your request in the allotted timeframe, then you are prohibited from using the proposed general contractor.
You will have 120 days following your receipt of our notice to refurbish your Restaurant to comply with our direction. If any such direction of ours requires you to expend more than $30,000 to effect the directed activity, then you will have 180 days following your receipt of our notice to comply with our direction. In addition, we will relieve you from our direction if in our sole opinion you will be unable to amortize the additional investment required during the balance of the Ini
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can require franchisees to update, remodel, refurbish, renovate, modify, or redesign their restaurants once during the initial term and each successor term to meet the then-current standards. If Bonchon directs a franchisee to refurbish their restaurant, the franchisee has 120 days from receipt of the notice to comply. However, if the refurbishment requires the franchisee to spend more than $30,000, they will have 180 days following receipt of the notice to complete the work.
Bonchon may relieve the franchisee from this directive if Bonchon believes the franchisee will be unable to amortize the additional investment during the remaining initial term. In this case, Bonchon may extend the term of the agreement to allow for a new amortization schedule, and the franchisee would then be required to comply with the refurbishment direction.
This means that a Bonchon franchisee needs to be prepared to complete any required updates within the specified timeframe, and have access to the necessary capital. Franchisees should also consider the potential for term extensions if the amortization of refurbishment costs becomes an issue.