factual

Under what conditions can WIN immediately limit, interrupt, suspend, or terminate services to a Bonchon franchise?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

in three days following written notice from us.

    1. You purchase any proprietary products or services from us or our affiliates, or purchase from us, our affiliates or any third-party non-proprietary goods or services pursuant to a systemwide supply contract we negotiate, and you use, divert, sell or otherwise exploit such products or services for the benefit of any other individual, entity or business.
    1. You operate your franchised Business and/or your Bonchon Restaurant in a fashion that, in our sole judgment, in any way jeopardizes the life, health or safety of the general public, your customers and/or your employees. If you do so, then not only may we terminate this Agreement upon notice, but you agree that we may either beforehand or concurrently direct you to immediately close your Bonchon Restaurant; you shall immediately comply with such direction (which may be given orally or in writing); and, you shall hold us harmless from and against any claims whatsoever relating to our direction to close your Restaurant.
    1. You fail to immediately endorse and tender to us any payment which is due us or our affiliates but is made to your order.
    1. You make any use of our Confidential Information and/or Proprietary Marks not specifically authorized by this Agreement or our Manuals, or you directly or indirectly utilize or devote same for the benefit of any individual or entity other than your franchised Business.
    1. You interfere or attempt to interfere with our ability or right to franchise or license others to use and employ the Bonchon System and/or Proprietary Marks.
    1. You interfere or attempt to interfere, through any means or manner, with our relationships with any other Bonchon franchisee, any supplier of yours or ours, any government authority, or any other third-party individual or entity.
    1. You engage in any act or conduct, or fail to engage in any act or conduct, which under this Agreement specifically authorizes us to terminate this Agreement immediately upon notice to you.
    1. You default under any agreement between you and any lessor or sublessor of your Restaurant Location and you do not cure the default within the period specified in the Location's lease or sublease (as applicable).

    1. You fail, on two or more occasions within any twelve (12) month period, to operate your Bonchon Business during the days and hours specified in our Manuals without our advance written approval.
    1. You or any of your owners' assets, property, or interests are blocked under any law, ordinance, or regulation relating to terrorist activities, or you or any of your owners otherwise violate any such law, ordinance, or regulation.
    1. Per Section 17.06 ("Cross-Default"), you (or any of your owners) fail to cure within the applicable time period any breaches under this Agreement, or any other agreement between you (or any of your affiliates) and us (or any of our affiliates) including, but not limited to, any other franchise agreement, area development agreement, lease or promissory note.

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can immediately terminate the Franchise Agreement under specific conditions. One such condition is if the franchisee operates their Bonchon Restaurant in a way that, in Bonchon's judgment, jeopardizes the life, health, or safety of the general public, customers, or employees. In such cases, Bonchon can direct the franchisee to immediately close the restaurant, and the franchisee must comply with this direction, whether it's given orally or in writing. The franchisee also agrees to hold Bonchon harmless from any claims related to the closure directive.

Another condition that allows Bonchon to immediately terminate the agreement is if the franchisee fails to secure an approved Restaurant Location within 90 days of the Effective Date of the agreement (or 60 days for a Remote Kitchen Restaurant) and fails to sign a lease or provide proof of ownership within 120 days (or 90 days for a Remote Kitchen Restaurant). This failure is considered a material and incurable breach, entitling Bonchon to terminate the agreement immediately upon notice, without any opportunity for the franchisee to cure the breach. In this scenario, the initial franchise fee is not refunded, and the franchisee must execute a General Release in favor of Bonchon.

Additionally, Bonchon can immediately terminate the agreement if the franchisee violates restrictions on transferring ownership interests. Specifically, if the franchisee permits any mortgage, lien, pledge, or other security interest in their business entity's shares, equity interests, or other ownership interests without Bonchon's prior written consent, Bonchon has the right to terminate the agreement immediately upon notice. These stipulations highlight the importance of adhering to Bonchon's operational standards, site selection timelines, and ownership transfer restrictions to avoid immediate termination of the franchise agreement.

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.