Under what conditions can a Bonchon franchisee relocate their Restaurant Location?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not relocate the Restaurant without our previous written approval. You must pay us a Relocation Fee equal to 25% of our then-current Initial Franchise Fee, plus reimburse us for any reasonable costs we incur in considering your request, provided, however, you will not have to pay us a Relocation Fee or reimburse us for our costs in considering your request to relocate a Remote Kitchen Restaurant when such relocation occurs upon the natural expiration of the lease for your Restaurant Location. For the avoidance of doubt, you will be required to pay us a Relocation Fee and reimburse us for our costs in considering your request to relocate your Remote Kitchen Restaurant Location, if the lease for your Restaurant Location is terminated due to your default. We will grant approval if you are in compliance with the Franchise Agreement, you have paid all money owed to us and our affiliates, the proposed location meets our site selection criteria, and you comply with the lease requirements in the Franchise Agreement. We may, if we wish, inspect your proposed new location.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee cannot relocate their restaurant without prior written approval from Bonchon. To relocate, the franchisee must pay Bonchon a Relocation Fee equal to 25% of the then-current Initial Franchise Fee. The franchisee must also reimburse Bonchon for any reasonable costs incurred while Bonchon considers the relocation request. However, a franchisee does not have to pay the Relocation Fee or reimburse Bonchon's costs if they are relocating a Remote Kitchen Restaurant upon the natural expiration of the lease for their Restaurant Location. If the lease is terminated due to the franchisee's default, the franchisee will be required to pay the Relocation Fee and reimburse Bonchon's costs.
Bonchon will grant relocation approval if the franchisee is in compliance with the Franchise Agreement, has paid all money owed to Bonchon and its affiliates, the proposed location meets Bonchon's site selection criteria, and the franchisee complies with the lease requirements in the Franchise Agreement. Bonchon may, at its discretion, inspect the proposed new location.
This policy is fairly standard in franchising, as franchisors want to ensure brand consistency and protect their trademarks by carefully controlling where franchisees operate. The relocation fee is also a common practice to compensate the franchisor for the time and resources spent evaluating the new location and ensuring it meets their standards. The exception for Remote Kitchen Restaurants upon lease expiration may reflect the lower investment and operational requirements of these locations compared to traditional restaurants.