Under what condition will Bonchon assume responsibility for paying the architectural fees owed to the Architect of Record (AOR) under the Bonchon Accelerated Architectural Services Program (BAASP)?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If the lease for your Restaurant Location is not executed due to the landlord withdrawing from the lease negotiation process, then we will assume the responsibility for paying the architectural fees owed to the AOR to date. If, however, you elect to cease lease negotiations and not execute the lease for your Restaurant Location because you refuse to (i) personally guaranty the terms of the lease or (ii) comply with a request from the landlord that would not (in our reasonable business judgment) impede your development and/or operation of your Restaurant, then you acknowledge, understand and expressly agree that you will be responsible for the AOR's architectural fees incurred to date per your architectural design services contract; provided that, the rent for your Restaurant Location is at or below market rate for the trade area and the estimated total development cost of the Restaurant falls within the cost range listed in the applicable table in Item 7 of the Franchise Disclosure Document we furnished to you in connection with this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon will assume responsibility for paying the architectural fees owed to the Architect of Record (AOR) under specific circumstances related to the lease agreement. This applies when the lease for the franchisee's restaurant location is not executed because the landlord withdraws from the lease negotiation process. This condition is part of the Bonchon Accelerated Architectural Services Program (BAASP), which aims to streamline restaurant development.
However, Bonchon will not be responsible for the AOR's fees if the franchisee chooses to cease lease negotiations and not execute the lease due to refusing to personally guarantee the lease terms or comply with a landlord's request. The exception to this is if the landlord's request would not impede the development or operation of the restaurant, in Bonchon's reasonable business judgment.
Furthermore, this condition is valid only if the rent for the restaurant location is at or below market rate for the trade area, and the estimated total development cost of the restaurant falls within the cost range listed in Item 7 of the Franchise Disclosure Document. This ensures that Bonchon's financial responsibility is limited to situations where the franchisee is not at fault and the project remains financially viable according to Bonchon's standards.