Under what condition does Bonchon have the right to enter and take possession of a Bonchon Restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon any termination of this Agreement by us for cause, we will have the right immediately to enter and take possession of your Bonchon Restaurant to maintain continuous operation of the previously franchised business, provide for orderly change of management and disposition of personal property, and otherwise protect our interests.
If you dispute the validity of our termination of the franchise, we will nevertheless have the option (which you irrevocably grant) to operate the business pending the final, unappealed determination of the dispute by a court of competent jurisdiction.
If a court of competent jurisdiction makes a final, unappealed determination that the termination was not valid, we agree to make a full and complete accounting for the period during which we operated the previously franchised business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has the right to enter and take possession of a Bonchon Restaurant if the franchise agreement is terminated for cause by Bonchon. This allows Bonchon to maintain continuous operation of the business, ensure an orderly change of management, handle the disposition of personal property, and protect Bonchon's interests.
Even if the franchisee disputes the validity of the termination, Bonchon retains the option to operate the business while the dispute is being resolved in court. This option is irrevocably granted by the franchisee. If a court ultimately determines that the termination was invalid, Bonchon is obligated to provide a full accounting for the period during which they operated the business.
This clause ensures that Bonchon can maintain control over its brand and operations even in the event of a dispute with a franchisee. It also protects Bonchon's interests by allowing them to continue operating the restaurant while the dispute is being resolved. For a prospective franchisee, this highlights the importance of adhering to the franchise agreement to avoid termination for cause, as it could result in the loss of the business and its assets.