Under what circumstances will Bonchon's acceptance of a payment from the franchisee NOT be considered a waiver of any breach of the Bonchon Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Without limiting any
of the foregoing, the acceptance of any payment specified to be paid by you under this Agreement will not be, nor constitute, a waiver of any breach of any term, covenant or condition of this Agreement.
We shall not be required to waive or impair any right, power, or option this Agreement reserves (including, without limitation, our right to demand exact compliance with every term, condition, and covenant or to terminate this Agreement before its term expires due to a breach) because of any custom or practice at variance with this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including, without limitation, any System standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Bonchon Restaurants; the existence of franchise agreements for other Restaurants which contain provisions different from those contained in this Agreement; or, our acceptance of any payments due from you after any breach of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon's acceptance of any payment from a franchisee that is specified to be paid under the Franchise Agreement will not be considered a waiver of any breach of any term, covenant, or condition of the agreement. This means Bonchon retains all its rights under the agreement, even if they accept payments from the franchisee after a breach has occurred.
This provision protects Bonchon's ability to enforce the Franchise Agreement fully, even if they continue to accept payments. For a prospective franchisee, this means that simply making payments does not excuse any breaches of the agreement. Bonchon can still take action against the franchisee for any violations, regardless of whether payments are current.
Bonchon is not required to waive or impair any right, power, or option the agreement reserves, including the right to demand exact compliance with every term, condition, and covenant or to terminate the agreement before its term expires due to a breach. This holds true regardless of any custom or practice at variance with the agreement's terms, or any failure, refusal, or neglect by Bonchon or the franchisee to exercise any right under the agreement. It also applies irrespective of any waiver or failure to exercise any right with other Bonchon Restaurants, or the existence of area development agreements for other Restaurants with different provisions, or Bonchon's acceptance of any payments due from the franchisee after any breach of the agreement.