factual

What training programs are acceptable for a Bonchon Operating Principal who will not engage in on-site management?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

If you are an individual, you must serve as Operating Principal and if you are an entity franchisee, you must designate an individual who either owns a majority interest in the franchised Business or, where there is no majority owner, who we otherwise approve of in writing to serve as your Operating Principal. The Operating Principal, who will have complete decision-making authority with regard to your franchised Bonchon Business and have authority to in all respects act on your behalf, will be the sole individual with whom we will be required to communicate when we seek to communicate with you. You must inform us in writing of your Operating Principal and any replacement Operating Principal in advance. We must approve your Operating Principal before you appoint them. Your Operating Principal must complete the Initial Training Program to our satisfaction, if he or she will have on-site supervision of the Restaurant's daily operations on a full-time basis. If your Operating Principal will not engage in the on-site management of the Restaurant's day-to-day operations on a full-time basis, then your Operating Principal must either attend and successfully complete our Initial Training Program or Partner Training Program. After an Operating Principal's death, disability or termination of employment, you must immediately (but no later than 5 days from the occurrence of such event) notify us, and you must designate a successor or acting Operating Principal within 10 days from the occurrence of such event.

Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 69–71)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, an Operating Principal who will not be involved in the on-site, day-to-day management of the restaurant must complete either the Initial Training Program or the Partner Training Program. The Operating Principal is the main point of contact between Bonchon and the franchisee, possessing complete decision-making authority. Bonchon must approve the Operating Principal.

For franchisees who choose not to have their Operating Principal directly manage the restaurant, Bonchon offers flexibility in training. The Partner Training Program may be an alternative to the Initial Training Program, potentially offering a different focus or structure more suited to a non-operational role.

It is important for prospective franchisees to understand the content and requirements of both the Initial Training Program and the Partner Training Program to determine which is more appropriate for their Operating Principal. Further details about each program, such as duration, topics covered, and associated costs, would be beneficial in making this decision. Franchisees should discuss these training options with Bonchon to ensure the chosen program adequately prepares the Operating Principal for their role in overseeing the Bonchon business.

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.