Under what circumstances must a Bonchon franchisee notify Bonchon and designate an interim or acting Area Manager?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you operate under an Area Development Agreement, then prior to you (or your affiliates, collectively with you) opening your third Bonchon Business and Restaurant, you must designate in writing to us an Area Manager who will have the obligation to oversee operations of each Bonchon Restaurant that you or your affiliates own and operate. You must inform us in writing of your Area Manager and any replacement Area Manager. The Area Manager must be certified to manage multi-unit operations and must have attended and successfully completed our Initial Training Program (and such additional training that we may require). Your Area Manager may not hold any other position in your organization or in any business entity or in any of your Bonchon Businesses while he/she is serving as your Area Manager. Upon the death, disability or termination of employment of the Area Manager, for any cause or reason, you must immediately notify us, and designate and obtain our written approval of an interim or acting Area Manager and, no later than 10 days following the death, disability or termination of the predecessor Area Manager, you must designate a successor Area Manager.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 69–71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee operating under an Area Development Agreement must immediately notify Bonchon if their Area Manager dies, becomes disabled, or is terminated. Following notification, the franchisee must designate an interim or acting Area Manager and obtain Bonchon's written approval. Within 10 days of the death, disability, or termination of the previous Area Manager, the franchisee must appoint a successor Area Manager.
This requirement ensures that Bonchon restaurants maintain consistent operational oversight, especially for franchisees with multiple locations. The Area Manager plays a crucial role in overseeing the operations of each Bonchon restaurant owned and operated by the franchisee and their affiliates.
The 10-day window to designate a successor Area Manager is relatively short, highlighting the importance Bonchon places on continuous, qualified management. Franchisees should have contingency plans in place to quickly identify and approve a replacement to avoid any disruption in operations and maintain compliance with the franchise agreement. The successor Area Managers must be certified to manage multi-unit operations and must also attend and successfully complete such additional training that Bonchon may require.