Under what circumstances can Bonchon terminate the franchise agreement immediately without providing written notice of default related to payments?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, we may terminate this Agreement immediately (without providing you with written notice of default) if any payment you owe to us, our affiliates or any lender which has provided financing to your franchised Business under any arrangement with us is not made within 30 calendar days after its due date.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can terminate the franchise agreement immediately without providing written notice of default if any payment owed to Bonchon, its affiliates, or any lender that has provided financing to the franchisee's Bonchon business is not made within 30 calendar days after its due date.
This means that if a franchisee fails to make a payment to Bonchon, its affiliates, or a lender within 30 days of the due date, Bonchon has the right to immediately terminate the franchise agreement. This is a stricter condition than the standard default cure period, which typically allows franchisees a period to rectify payment issues after receiving a notice of default. The 30-day period includes all payments under any arrangement with Bonchon.
This condition highlights the importance of maintaining timely payments to Bonchon and related parties. Franchisees should ensure they have sufficient financial resources and systems in place to meet all payment obligations promptly to avoid the risk of immediate termination. This immediate termination clause underscores the financial responsibilities and potential risks associated with the Bonchon franchise.