Under what conditions can a Bonchon franchisee suspend or discontinue operations due to a breach by the franchisor, according to Item 17?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to give us immediate written notice of any alleged breach or violation of this Agreement after you have constructive or actual knowledge of, believe, determine or are of the opinion that there has been an alleged breach of this Agreement by us, including any acts of misfeasance or nonfeasance. If you do not give written notice to us of any alleged breach of this Agreement within one year from the date that you have knowledge of, believe, determine or are of the opinion that there has been an alleged breach by us, then our alleged breach will be considered to be condoned, approved and waived by you and will not be considered to be a breach of this Agreement by us, and you will be permanently barred from commencing any action against us for the alleged breach or violation.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, Item 18.02 outlines the procedure a franchisee must follow if they believe Bonchon has breached the agreement. Specifically, the franchisee must provide Bonchon with immediate written notice of the alleged breach after gaining knowledge of it.
According to the FDD, if a Bonchon franchisee fails to provide written notice of any alleged breach within one year from the date they become aware of it, the breach is considered condoned, approved, and waived by the franchisee. In this case, the franchisee is permanently barred from taking any action against Bonchon for the alleged breach or violation.
This notification requirement has significant implications for prospective Bonchon franchisees. It emphasizes the importance of promptly addressing any concerns or perceived breaches of the franchise agreement. Failing to do so within the one-year timeframe could result in the franchisee losing their right to pursue legal action or seek remedies for the alleged breach. This clause is designed to encourage open communication and timely resolution of disputes between Bonchon and its franchisees.