Under what conditions is a Bonchon franchisee required to designate an Area Manager?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
day management responsibility for your Bonchon Business, and will exercise on-premises supervision and personally participate in the direct operation of the Business. You Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof.
If this Agreement is for the opening of your (or your affiliates, collectively with you) third Bonchon Business, then you must designate an "Area Manager" to us in writing prior to opening your third Bonchon Business, who will oversee the operations of each Bonchon Restaurant that you and/or your affiliates own and operate. The Area Manager must be certified to manage multi-unit operations. Your Area Manager must secure the requisite certifications and attend and successfully complete the training that we prescribe in Section 7.02 above. The requirement to designate an Area Manager
prior to the opening of your third Bonchon Business applies whether the development of your third Bonchon Business is (i) pursuant to the Development Schedule in Section 6.01 of your (or your affiliate's) Area Development Agreement, (ii) the result of you (or your affiliates) entering into separate unrelated unit franchise agreements with us, (iii) the result of your (or your affiliates') acquisition of existing Bonchon Businesses, or (iv) the result of some combination of the foregoing.
If the franchisee is a business entity, neither the General Manager, the Area Manager nor the Manager need have an equity interest in the franchisee entity.
You must immediately notify us within five (5) days upon the death, disability or termination of employment of your Operating Principal, General Manager, Manager or Area Manager, for any cause or reason. You must designate a successor or acting Operating Principal General Manager, Manager or Area Manager, as applicable, promptly and, in any event, no later than ten (10) days following the death, disability or termination of the predecessor Operating Principal, General Manager, Manager or Area Manager, as applicable. Each successor Operating Principal, General Manager and Area Manager must possess those credentials set forth in our Manuals. Each successor Operating Principal, General Manager, Manager or Area Manager must satisfy our initial training requirements pursuant to Section 7.02 hereof (if such successor Operating Principal, General Manager, Manager or Area Manager has not already done so) and each successor Operating Principal, General Manager, Manager and Area Manager, as applicable, must attend and successfully complete such other reasonable training at such times as we may specify, all at your expense. The failure to employ and train (as applicable) a successor Operating Principal, General Manager, Manager or Area Manager will constitute a material breach of this Agreement.
8.08 Requirements Concerning Products and Services
A. Products and Services You Sell
You agree to sell all products, services and programs which are part of the Bonchon System and all other products, services and programs which we in the future incorporate into the Bonchon System unless, as to any one or more items, sale is prohibited by local law or regulation or we have granted you our advance written approval to exclude a product, service or program. You may not sell any product, service or program which is not a part of the Bonchon System or which we delete from the System. Notwithstanding the foregoing, depending on the type of Restaurant you elect to operate, you may be limited in which products, services and programs your Restaurant may offer and sell.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee is required to designate an Area Manager under specific conditions related to the number of Bonchon businesses they (or their affiliates) operate. Prior to opening a third Bonchon Business, the franchisee must designate an Area Manager in writing to Bonchon. This individual will be responsible for overseeing the operations of all Bonchon Restaurants owned and operated by the franchisee and their affiliates.
The requirement to designate an Area Manager applies regardless of how the third Bonchon Business is developed. This includes scenarios where the development is pursuant to a Development Schedule in an Area Development Agreement, through separate unrelated unit franchise agreements, via acquisition of existing Bonchon Businesses, or a combination of these methods. The Area Manager must be certified to manage multi-unit operations and must also have a Bonchon-approved nationally accredited food manager certification, in addition to any safe food handling courses required by the local municipality.
Before engaging the services of an Area Manager, the franchisee must identify the individual to Bonchon. The Area Manager must attend and successfully complete Bonchon's Initial Training Program and any additional training that Bonchon may require before the opening of the third Bonchon Business. While Bonchon does not charge for the training itself, the franchisee is responsible for covering all expenses incurred by the Area Manager during training, including salaries, travel costs, meals, lodging, and other living expenses. The Area Manager cannot hold any other position within the franchisee's organization or in any of their Bonchon Businesses while serving as the Area Manager.