Under what conditions might a Bonchon franchisee in Washington be required to register as a franchise broker?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee Referral Program: It the position of the Department of Financial Institutions that franchisees who receive financial incentives to refer franchise prospects to franchisors may be required to register as franchise brokers under the laws of Washington.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a Bonchon franchisee in Washington may be required to register as a franchise broker if they receive financial incentives to refer franchise prospects to Bonchon. This is based on the position of the Department of Financial Institutions in Washington.
This means that if a franchisee is compensated for recommending potential new franchisees to Bonchon, they might need to comply with franchise broker registration requirements in Washington. These requirements are put in place to ensure that individuals involved in selling franchises are properly regulated and provide accurate information to prospective franchisees.
It is important for any Bonchon franchisee in Washington who is considering referring potential franchisees and receiving financial incentives to consult with legal counsel to determine whether they need to register as a franchise broker. Failure to comply with these registration requirements could result in legal and financial penalties.