factual

Under what conditions can Bonchon terminate the agreement if a franchisee repeatedly fails to comply with requirements, even if corrected after notice?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

| Provision | Agreement* | Summary | | | | v. You repeatedly fail to comply with one or more requirements of this | | | | Franchise Agreement, whether or not corrected after notice. |

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can terminate the franchise agreement if a franchisee repeatedly fails to comply with one or more requirements of the Franchise Agreement, regardless of whether the franchisee corrects the issue after receiving notice. This provision gives Bonchon the right to terminate the agreement even if the franchisee attempts to rectify the non-compliance.

This condition highlights the importance of consistent adherence to the franchise agreement. It means that even if a Bonchon franchisee addresses a violation after being notified, repeated instances of non-compliance can still lead to termination. This is stricter than some franchise agreements, which may only allow termination if the franchisee fails to cure a violation within a specified time frame.

For a prospective Bonchon franchisee, this underscores the need to thoroughly understand and consistently follow all requirements outlined in the Franchise Agreement. It also emphasizes the importance of maintaining open communication with Bonchon to address any potential compliance issues proactively. The franchisee should prioritize establishing systems and processes to ensure ongoing compliance and avoid repeated violations, which could jeopardize their franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.