Under what circumstances can Bonchon cure a franchisee's default?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
nd Guarantors by this Agreement, our Manuals and/or all Supplements to the Manuals or if you and/or your owners or Guarantors, otherwise fail to fulfill the terms of this Agreement in good faith. These defaults include the following events, which are set forth as examples only and are not meant to, nor shall they be deemed to, delineate all of the possible defaults which you may commit under this Agreement:
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- You or any of your affiliates fail, refuse or neglect to pay promptly when due any money owed to us, our affiliates or any lender which has provided financing to your franchised Business. The cure period for this default shall not be the above-referenced fifteen calendar days but, instead, will be five calendar days after we transmit to you a written notice or default. If you fail to cure any such default within such shortened cure period, then this Agreement will terminate immediately upon expiration of the applicable cure period, or any longer period required by applicable law. Notwithstanding the foregoing, we may terminate this Agreement immediately (without providing you with written notice of default) if any payment you owe to us, our affiliates or any lender which has provided financing to your franchised Business under any arrangement with us is not made within 30 calendar days after its due date.
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- You fail, refuse or neglect to submit the financial and non-financial reports and other information required to be submitted to us under this Agreement, our Manuals or other written notices we transmit to you, or you make any false statements in connection with any reports or other information required to be submitted to us.
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Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee may have the opportunity to cure a default under certain circumstances. If a franchisee commits an act or default that materially impairs the goodwill associated with Bonchon's Proprietary Marks, and the default is curable, the franchisee has the opportunity to cure the default following delivery of written notice to cure at least seventy-two hours in advance.
However, the cure period is shortened to five calendar days if the default involves failure to pay money owed to Bonchon, its affiliates, or any lender that has provided financing to the franchisee's business. This five-day cure period begins after Bonchon transmits a written notice of default to the franchisee. Bonchon can terminate the agreement immediately, without providing written notice of default, if any payment owed to them, their affiliates, or any lender is not made within 30 calendar days after its due date.
If a franchisee cures a default, they must not commit the same act of default again within 6 months. If the franchisee defaults under any agreement between them and any lessor or sublessor of their Restaurant Location, they must cure the default within the period specified in the Location's lease or sublease.