Under what conditions can Bonchon terminate the Development Agreement immediately if the franchisee fails to perform required actions related to the Franchise Disclosure Document Receipt or Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If you fail to perform any of the acts or fail to deliver any of the notices required pursuant to the provisions of subsections (2) or (3) above in a timely fashion, this will be a material and incurable breach of this Agreement which, unless we waive the breach, will entitle us to terminate this Agreement immediately on notice to you, with no opportunity to cure.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can terminate the Development Agreement immediately if the franchisee fails to take certain required actions related to the Franchise Disclosure Document Receipt or the Franchise Agreement. Specifically, this occurs if the franchisee fails to acknowledge receipt of the Franchise Disclosure Document by not executing and promptly returning the Receipt form to Bonchon.
Additionally, immediate termination can occur if the franchisee fails to execute and return the Franchise Agreement itself, along with the appropriate fees, promptly upon receipt. Bonchon must provide the Franchise Agreement to the franchisee no sooner than fourteen business days, but no later than thirty calendar days, after receiving the signed Franchise Disclosure Document Receipt.
In both scenarios, Bonchon considers these failures a material and incurable breach of the Development Agreement. Unless Bonchon chooses to waive the breach, it is entitled to terminate the agreement immediately by providing notice to the franchisee, without offering an opportunity to cure the breach. This highlights the importance of adhering to the specified timelines and procedures when dealing with the Franchise Disclosure Document and Franchise Agreement during the development phase.