Under what circumstances would the General Release – Assignment apply for a Bonchon franchise?

According to Bonchon's 2025 Franchise Disclosure Document, the General Release - Assignment applies primarily when a franchisee seeks to transfer their interest in the franchise to a third party. Specifically, Section 14.04(O) of the Franchise Agreement requires the execution of a General Release as a condition of assignment. However, the Maryland Addendum modifies this requirement for franchises offered and sold under Maryland law, stating that the release requirement is not intended to act as a release of any liability incurred under the Maryland Franchise Registration and Disclosure Law, and the release will not apply to claims arising under that law.

Bonchon requires franchisees to obtain written consent from them before assigning or transferring any interest in the franchise, business, or rights to use the Bonchon system. As part of obtaining this consent, Bonchon may require the proposed assignee to apply for acceptance as a franchisee and furnish information to determine their qualifications, financial condition, and ability to fulfill the obligations under the Franchise Agreement. The proposed assignee may also be required to attend a personal interview.

If Bonchon consents to the assignment, they will also consent to the assignment of the franchisee's lease for the Bonchon Restaurant and all other agreements between the franchisee and Bonchon or its affiliates. The franchisee remains liable under all assigned agreements to the extent required. Bonchon's approval of any assignment does not constitute a waiver of any claims against the franchisee or a guarantee of the Restaurant's or assignee's success, nor does it waive Bonchon's right to demand the assignee's full compliance with the agreement. Franchisees should be aware of these conditions and potential liabilities when considering an assignment of their Bonchon franchise.