Under what circumstances can the Board impose fines or penalties on Bonchon members?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
When any member shall be in default in the payment of any fees, dues, assessments, fines or penalties for a period of sixty (60) days from the beginning of the period for which such amounts become payable, his or its membership may thereupon be terminated in the manner provided in Section 4.07 of these By-Laws. In addition, such default may result in termination of the member's rights under his/its Franchise Agreement.
12.04 Payments Non-Refundable
Except upon the affirmative vote of seventy-five (75%) percent of the members present and voting (in person or by proxy) at any meeting of members, no member shall be entitled to a refund of any part of the dues, assessments, fines and/or penalties paid by such member to the Corporation.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Board can impose fines or penalties on members under specific circumstances related to payment defaults. If a Bonchon member fails to pay any fees, dues, assessments, fines, or penalties within sixty (60) days from the date they become payable, their membership may be terminated. This termination process would follow the guidelines outlined in Section 4.07 of the By-Laws.
This means that as a Bonchon franchisee, you are expected to maintain timely payments of all financial obligations to the Corporation. Failure to do so within the specified timeframe can lead to the termination of your membership, which could have implications for your standing within the Bonchon franchise network.
Additionally, the FDD states that no member is entitled to a refund of any dues, assessments, fines, and/or penalties paid to the Corporation unless seventy-five (75%) percent of the members present and voting (in person or by proxy) at any meeting of members vote affirmatively for such a refund. This indicates that recovering any payments made, especially in the context of fines or penalties, is not guaranteed and requires significant support from other members.