Under what agreement are the terms and conditions for subsequent Bonchon Restaurant Location site approvals set?

According to Bonchon's 2025 Franchise Disclosure Document, the terms and conditions for site approvals for subsequent Bonchon Restaurant locations are set forth in the Area Development Agreement. Specifically, Bonchon does not approve or disapprove of the site for the first Restaurant Location under the Area Development Agreement under the unit Franchise Agreement. However, Bonchon does approve and disapprove the sites for subsequent Restaurant Locations pursuant to the terms and conditions set forth in the Area Development Agreement. These approvals are also in accordance with Bonchon's then-current standards.

This means that if a franchisee signs an Area Development Agreement to open multiple Bonchon locations, the initial location's site approval follows the standard Franchise Agreement process. However, for all subsequent locations opened under the Area Development Agreement, the site approval process and criteria are governed by the terms outlined in that Area Development Agreement itself.

For a prospective Bonchon franchisee, this highlights the importance of carefully reviewing the Area Development Agreement, especially regarding site selection criteria and approval processes for future locations. The standards imposed by Bonchon at the time of approval will also be considered. Understanding these terms is crucial for planning and executing the development schedule effectively and avoiding potential conflicts or delays in opening new restaurants.