Under what conditions can Bonchon require a franchisee to meet certain financial requirements?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can require a proposed assignee to meet certain financial requirements if a franchisee seeks to assign their franchise agreement to a new party. Specifically, Bonchon assesses whether the proposed assignee possesses the organizational, managerial, and financial structure, resources, and capital necessary to operate the franchised business according to Bonchon's standards. These standards are determined by Bonchon, taking into account factors such as the number of restaurants involved, the market areas, and their geographic proximity.

This condition ensures that any new operator taking over a Bonchon franchise has the financial stability and business acumen to maintain the brand's standards and operational requirements. It protects Bonchon's interests by preventing financially unstable or poorly managed entities from acquiring franchises and potentially damaging the brand's reputation.

For a prospective franchisee looking to eventually sell or transfer their Bonchon franchise, it's crucial to understand these requirements. Identifying and attracting financially sound and capable assignees will be essential for a smooth transfer process. Furthermore, franchisees should maintain their business in good standing and ensure all financial obligations are current to facilitate the assignment process.