Under what condition can Bonchon terminate the Franchise Agreement if a franchisee fails to furnish the required financial statements or tax returns?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
F. If you do not timely furnish to us any of the financial statements or tax returns required above in this Article 10 then you agree to pay us a late charge of $50 per month that each financial statement or tax return is overdue. We may also in such circumstance elect to terminate this Agreement upon giving you notice and an opportunity to cure your default.
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You do not maintain the financial records required by Section 11.02 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 if a franchisee fails to furnish required financial statements or tax returns under specific conditions. If a franchisee does not provide the required financial statements or tax returns, Bonchon can issue a notice of default, allowing the franchisee an opportunity to correct the issue. However, if the franchisee fails to furnish the financial statements or tax returns, Bonchon may elect to terminate the agreement.
Additionally, Bonchon may impose a late charge of $50 per month for each overdue financial statement or tax return. This late charge serves as an additional penalty for non-compliance with the reporting requirements.
Furthermore, Bonchon can immediately terminate the Franchise Agreement if a franchisee does not maintain the financial records required by Section 11.02 of the agreement. This section likely outlines the specific types of records that must be kept, and failure to maintain these records constitutes a material and incurable breach, allowing Bonchon to terminate the agreement with notice and no opportunity to cure the default.