Under the Bonchon Accelerated Architectural Services Program (BAASP), what are the conditions under which the franchisee is responsible for the Architect of Record's (AOR) architectural fees?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If the lease for your Restaurant Location is not executed due to the landlord withdrawing from the lease negotiation process, then we will assume the responsibility for paying the architectural fees owed to the AOR to date. If, however, you elect to cease lease negotiations and not execute the lease for your Restaurant Location because you refuse to (i) personally guaranty the terms of the lease or (ii) comply with a request from the landlord that would not (in our reasonable business judgment) impede your development and/or operation of your Restaurant, then you acknowledge, understand and expressly agree that you will be responsible for the AOR's architectural fees incurred to date per your architectural design services contract; provided that, the rent for your Restaurant Location is at or below market rate for the trade area and the estimated total development cost of the Restaurant falls within the cost range listed in the applicable table in Item 7 of the Franchise Disclosure Document we furnished to you in connection with this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Bonchon Accelerated Architectural Services Program (BAASP) is designed to help franchisees streamline restaurant development. However, under certain conditions, the franchisee may be responsible for the Architect of Record's (AOR) fees.
Specifically, a Bonchon franchisee will be responsible for the AOR's architectural fees if they elect to cease lease negotiations and do not execute the lease because they refuse to (i) personally guarantee the terms of the lease or (ii) comply with a request from the landlord that would not impede the restaurant's development or operation, in Bonchon's reasonable business judgment. This is contingent on the rent being at or below market rate and the estimated total development cost falling within the range listed in Item 7 of the FDD.
This condition highlights the importance of carefully considering lease terms and landlord requests. A franchisee's decision to walk away from a lease for personal reasons or non-critical landlord demands could result in them having to cover the architectural fees incurred to that point. This could be a significant expense, so franchisees should weigh their options carefully and seek guidance from Bonchon before making such decisions.