Under what conditions can the Estate of a deceased or disabled Bonchon area developer continue operating the business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Area Development Agreement | Summary |
|---|---|---|
| p. Your death or disa- bility | Section 12.04 | On your death or disability (if you are an individual), or the death or disability of your last surviving owner (if you are a business entity), that person’s rights pass to his or her "Estate". The Estate may continue operating the Business if it provides an acceptable Area Business Manager. This Area Business Manager must assume full time operation of the franchise within 90 days of death or disability. (Subject to state law.) |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the estate of a deceased or disabled area developer may continue to operate the business under specific conditions. If the area developer is an individual, or if a business entity, the last surviving owner experiences death or disability, their rights pass to their Estate.
The Estate is permitted to continue operating the Bonchon business if it provides an acceptable Area Business Manager. This manager must assume full-time operation of the franchise within 90 days of the death or disability.
This provision ensures business continuity while the Estate manages the deceased or disabled developer's affairs. However, it's important to note that the Area Business Manager must be deemed acceptable by Bonchon, and the 90-day timeframe for assuming full-time operation is a critical requirement. Prospective franchisees should clarify with Bonchon what criteria are used to evaluate and approve an Area Business Manager to ensure a smooth transition in unforeseen circumstances.