Under what conditions will an attempted assignment of the Bonchon License Agreement be considered an incurable breach?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Any actual or attempted assignment, transfer or sale of this Agreement, the franchise conveyed hereunder, the franchised Business, your franchised Bonchon Restaurant, any ownership interest in you (if you are a business entity), any of the other interests, rights or privileges identified in the preceding paragraph, or any interest in any of these, in violation of the terms of this Article 14, will be null, void and of no effect, and will be a material and incurable breach of this Agreement which, unless we waive to the breach, will entitle us to terminate this Agreement immediately upon notice to you, with no opportunity to cure.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, any attempt to assign, transfer, or sell the Franchise Agreement or any related interests without Bonchon's written consent and compliance with Article 14 is considered a material and incurable breach. This includes the agreement itself, the franchise, the franchised business, the Bonchon Restaurant, any ownership interest in the franchisee (if a business entity), or any rights or privileges associated with these.
This means that a Bonchon franchisee cannot transfer ownership or control of their franchise to another party without first getting approval from Bonchon. This requirement protects Bonchon by ensuring that any new owner meets their standards and is capable of operating the franchise successfully.
The consequence of violating this provision is severe: Bonchon has the right to immediately terminate the Franchise Agreement upon notice, without giving the franchisee an opportunity to correct the breach. This highlights the importance of adhering to the outlined procedures for assignment, transfer, or sale as specified in Article 14 of the agreement. Franchisees should carefully review and understand these requirements to avoid potential termination of their franchise agreement.