Under what conditions can a Bonchon franchisee enter into a Successor Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement* | Summary |
|---|---|---|
| a. Length of the franchise term | Section 4.01 | Term of Franchise Agreement will commence on the effective date and expire 10 years from the day your Bonchon Restaurant commences operations. |
| b. Renewal or exten- sion of the term | Section 4.02, 13.01 | You can enter into two consecutive Successor Franchise Agreements for a term of five years each if you comply with the conditions for a Successor Term. |
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, a franchisee can enter into a Successor Franchise Agreement if they comply with the conditions for a Successor Term. Specifically, the FDD states that a franchisee can enter into two consecutive Successor Franchise Agreements. Each of these successor agreements has a term of five years.
This means that after the initial 10-year franchise term expires, a Bonchon franchisee has the option to renew their agreement twice, each renewal lasting five years. This provides an opportunity for franchisees to extend their business operations beyond the initial term, offering continued use of the Bonchon brand and system.
However, the FDD excerpt does not detail the specific conditions required to qualify for a Successor Term. A prospective franchisee should carefully review Section 4.02 and 13.01 of the Franchise Agreement, as referenced in Item 17, to understand the specific requirements and obligations for renewal. It would be prudent to discuss these conditions with Bonchon's franchise representatives to fully understand the renewal process and criteria.