Under what circumstances is a Bonchon member not required to be given notice of a meeting?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
h final action on the suspension or expulsion is to be taken. Such notice shall state the time and place where the meeting of the membership is to take place, and shall specify the grounds upon which such suspension or expulsion is sought. The member shall be given an opportunity at the meeting to present any information relevant to the question of suspension or expulsion. A member who is suspended or expelled shall have no recourse or claim against the Corporation or any director, officer, employee, agent or member of the Corporation by reason of such suspension or expulsion and shall remain liable for all contributions due and owing prior to the date on which the membership votes to suspend or expel the member. Notwithstanding anything to the contrary set forth above, if a member no longer has a license in good standing to operate a Bonchon Business in the ADI (as defined by Section 4.01 of these By-Laws), expulsion of such member shall be automatic and shall not require a meeting or vote of the Board or of the membership.
4.08 Reinstatement
- A.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, there are specific circumstances where a member is not required to be given notice of a meeting. Specifically, if a Bonchon member no longer has a license in good standing to operate a Bonchon Business in the ADI (Area of Dominant Influence), their expulsion from the membership is automatic. In this case, no meeting or vote of the Board or of the membership is required to proceed with the expulsion.
Additionally, the document states that notice of a meeting need not be given to any member who submits a signed waiver of notice either before or after the meeting. This waiver indicates that the member is consciously forgoing their right to be informed of the meeting. Similarly, if a member attends a meeting without protesting the lack of notice before the meeting concludes, this is also considered a waiver of their right to receive notice.
These stipulations are important for prospective Bonchon franchisees to understand, as they outline the conditions under which their membership can be terminated without prior notification, as well as the ways in which they can voluntarily waive their right to receive notice of meetings. Franchisees should be aware of the ADI and ensure they maintain their license in good standing to avoid automatic expulsion. Furthermore, franchisees should carefully consider the implications before signing a waiver of notice or attending a meeting without protesting the lack of notice, as these actions can affect their rights and involvement in important decisions related to the Bonchon franchise.