Under what circumstances is a Bonchon director deemed removed from the board effective immediately?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Any or all of the directors may be removed at any time by a vote of two-thirds of all of the members of that director's geographic region; provided, however, in the event that the membership of a director has been terminated, has expired or does not otherwise subsist, such director shall, for all purposes be deemed removed from the Board effective simultaneously with the effective date of expulsion or suspension of such director's membership.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a director is deemed removed from the board immediately if their membership has been terminated, has expired, or does not otherwise subsist. This removal is effective simultaneously with the expulsion or suspension of the director's membership.
This means that if a director's franchise agreement is terminated, expires, or is suspended, they automatically lose their position on the board. This provision ensures that only active and qualified Bonchon franchisees can serve as directors.
For a prospective franchisee, this implies that maintaining good standing as a franchisee is crucial not only for operating their restaurant but also for retaining any position they might hold on the board of directors. Loss of a franchise can have cascading effects, including the loss of leadership roles within the Bonchon organization.