Under what circumstances can Bonchon terminate the franchise agreement without an opportunity for the franchisee to cure the breach?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
equipment is instituted
against you and is not dismissed or settled by the earlier of (i) thirty (30) days from commencement or (ii) consummation of such sale; or, if you are a business entity, your governing body adopts any resolution or otherwise authorizes action to approve any of the foregoing activities.
17.02 Termination By Us Upon Notice – No Opportunity To Cure
You will have materially breached this Agreement and we may, at our option, terminate this Agreement and all rights granted under this Agreement, without giving you any opportunity to cure the breach, effective immediately upon your receipt of notice (which, whether sent by certified mail, registered mail, overnight courier or personal physical delivery, will be deemed to have been received by you upon delivery or first attempted delivery of the notice to you) upon the occurrence of any of the following events:
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- You do not open your Bonchon Restaurant for business within 300 days after the Effective Date of this Agreement or on or before the Scheduled Opening Date, whichever is earlier; cease operating the franchised Business; abandon the franchise relationship established under this Agreement; or, fail to operate your Bonchon Restaurant for two consecutive days, or three individual days within a twelve month period, during which you are required to operate it under this Agreement, unless your failure to operate is due to force majeure (as defined in Section 20.01).
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- You omitted or misrepresented any material fact in the information that you furnished to us in connection with our decision to enter into this Agreement.
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- We and you agree in writing to terminate the Franchise Agreement.
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- You do not secure the Restaurant Location for the franchised Business within the time limits and following the procedures specified in Article 6 of this Agreement.
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- You lose the right to possession of the Restaurant Location, provided that if the loss of possession results from the government's exercise of the power of eminent domain, or if, through no fault of yours, the premises are damaged or destroyed, then you will have thirty days after this event to apply for our approval to relocate your Bonchon Restaurant in accordance with the relocation provisions of this Agreement.
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 without giving the franchisee an opportunity to cure the breach under several specific circumstances. These include failing to open the Bonchon Restaurant within 300 days after the Effective Date of the agreement or by the Scheduled Opening Date (whichever is earlier), ceasing operations, abandoning the franchise, or failing to operate the restaurant for two consecutive days or three individual days within a twelve-month period, unless due to force majeure.
Additionally, Bonchon can terminate the agreement immediately if the franchisee omits or misrepresents any material fact in the information provided to Bonchon when entering into the agreement. Immediate termination is also possible if both parties agree in writing to terminate the Franchise Agreement, or if the franchisee fails to secure the Restaurant Location within the specified time limits and procedures.
Furthermore, Bonchon can terminate the agreement without an opportunity to cure if the franchisee loses the right to possession of the Restaurant Location, unless this loss is due to eminent domain or premises damage through no fault of the franchisee, in which case the franchisee has thirty days to apply for relocation approval. Another instance allowing immediate termination is if the franchisee fails to perform required actions or deliver required notices related to the lease in a timely manner. These stipulations highlight the importance of adhering to the timelines, providing accurate information, and maintaining control of the restaurant location to avoid immediate termination of the Bonchon franchise agreement.