Under what condition will the Bonchon franchise agreement NOT be binding on the licensor?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
So long as you are not in default of this Agreement or the Franchise Agreements, we will grant you the right and obligation to acquire and operate Bonchon franchises in the Development Territory and pursuant to the Development Schedule, upon the terms and subject to the provisions of this Agreement and the terms of each Franchise Agreement entered into between you and us and of all documents related to this Agreement and the Franchise Agreement, and to use solely and in connection with these Franchise Agreements the Bonchon System as it may be changed, improved, modified or further developed from time to time, in the Development Territory as defined in this Agreement and upon the terms and subject to the provisions of this Agreement and the terms of all documents related to this Agreement and the Franchise Agreements.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
The 2025 Bonchon Franchise Disclosure Document states that Bonchon is obligated to allow the franchisee to acquire and operate Bonchon franchises in the Development Territory, provided the franchisee is not in default of the Development Agreement or the Franchise Agreements. Bonchon must also adhere to the terms of all documents related to the Development Agreement and the Franchise Agreement.
Specifically, Bonchon's obligation hinges on the franchisee's adherence to the Development Schedule and the terms outlined in both the Development Agreement and individual Franchise Agreements. This includes using the Bonchon System as it evolves and fulfilling all related contractual duties.
In practical terms, a Bonchon franchisee must remain in good standing, fulfilling all contractual obligations and payment schedules, to ensure Bonchon fulfills its obligations regarding the franchise agreement. Failure to meet these conditions could release Bonchon from its duties under the agreement.