Under what condition might Bonchon permit a franchisee to not personally supervise the operation of the franchised business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must personally supervise the operation of the franchised Business, unless we permit otherwise in writing. You must devote the necessary time and your best efforts for the proper and effective operation of the Business. If we license you to operate more than one Bonchon Business, you must devote the time necessary for the proper and effective operation of all your Businesses.
If you are an individual, you must serve as Operating Principal and if you are an entity franchisee, you must designate an individual who either owns a majority interest in the franchised Business or, where there is no majority owner, who we otherwise approve of in writing to serve as your Operating Principal. The Operating Principal, who will have complete decision-making authority with regard to your franchised Bonchon Business and have authority to in all respects act on your behalf, will be the sole individual with whom we will be required to communicate when we seek to communicate with you. You must inform us in writing of your Operating Principal and any replacement Operating Principal in advance. We must approve your Operating Principal before you appoint them. Your Operating Principal must complete the Initial Training Program to our satisfaction, if he or she will have on-site supervision of the Restaurant's daily operations on a full-time basis. If your Operating Principal will not engage in the on-site management of the Restaurant's day-to-day operations on a full-time basis, then your Operating Principal must either attend and successfully complete our Initial Training Program or Partner Training Program. After an Operating Principal's death, disability or termination of employment, you must immediately (but no later than 5 days from the occurrence of such event) notify us, and you must designate a successor or acting Operating Principal within 10 days from the occurrence of such event.
Source: Item 15 — OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE FRANCHISE BUSINESS (FDD pages 69–71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must personally supervise the operation of the franchised business. However, Bonchon may permit otherwise in writing. The franchisee is still obligated to devote the necessary time and their best efforts for the proper and effective operation of the business. If a franchisee is licensed to operate more than one Bonchon Business, they must devote the time necessary for the proper and effective operation of all their Businesses.
If the franchisee is an individual, they must serve as Operating Principal. If the franchisee is an entity, they must designate an individual who either owns a majority interest in the franchised Business or, where there is no majority owner, who Bonchon otherwise approves of in writing to serve as the franchisee's Operating Principal. The Operating Principal will have complete decision-making authority with regard to the franchised Bonchon Business and have authority to in all respects act on the franchisee's behalf, and will be the sole individual with whom Bonchon will be required to communicate when they seek to communicate with the franchisee.
The franchisee must inform Bonchon in writing of their Operating Principal and any replacement Operating Principal in advance, and Bonchon must approve the Operating Principal before the franchisee appoints them. The Operating Principal must complete the Initial Training Program to Bonchon's satisfaction, if he or she will have on-site supervision of the Restaurant's daily operations on a full-time basis. If the Operating Principal will not engage in the on-site management of the Restaurant's day-to-day operations on a full-time basis, then the Operating Principal must either attend and successfully complete Bonchon's Initial Training Program or Partner Training Program. After an Operating Principal's death, disability or termination of employment, the franchisee must immediately (but no later than 5 days from the occurrence of such event) notify Bonchon, and the franchisee must designate a successor or acting Operating Principal within 10 days from the occurrence of such event.