Under what circumstances would a member of Bonchon Franchise, LLC be liable for the debts, obligations, or other liabilities of the company?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon Franchise, LLC is a limited liability company, which generally protects its members from being personally liable for the company's debts and obligations. However, there is a specific exception to this rule.

A member of Bonchon Franchise, LLC can be held liable for the company's debts, obligations, or other liabilities if the member has signed a specific guarantee. This means that if a member has provided a personal guarantee for any of the company's financial obligations, such as loans or leases, they can be held personally responsible for those debts if the company defaults.

This is a common practice in franchising, especially for new or smaller franchise systems, as it provides additional security to lenders and other creditors. Prospective Bonchon franchisees should carefully review any agreements they are asked to sign and understand the extent of any personal guarantees they may be providing. It is advisable to seek legal counsel to fully understand the implications of signing a personal guarantee.