Under the Bonchon Franchise Agreement guarantee, can Bonchon Franchise LLC proceed directly against the guarantors if the franchisee defaults?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Should Franchisee be in breach or default under the Franchise Agreement or any other agreement(s) by and between Franchisee and Franchisor, Franchisor may proceed directly against any or each of the undersigned without first proceeding against Franchisee and without proceeding against or naming in such suit any other Franchisee, signatory to the Franchise Agreement or any others of the undersigned. The undersigned agree to bear any and all Franchisor's costs of collection hereunder, including all court costs and expenses, attorneys' fees, costs of or resulting from delays; travel, food, lodging and other living expenses necessitated by the need or desire to appear before courts or tribunals (including arbitration tribunals), and all other costs of collection.
Notice to or demand upon Franchisee or any of the undersigned shall be deemed notice to or demand upon Franchisee and all of the undersigned, and no notice or demand need be made to or upon any or all of the undersigned. The cessation of or release from liability of Franchisee or any of the undersigned shall not relieve any other Guarantors from liability hereunder, under the Franchise Agreement, or under any other agreement(s) between Franchisor and Franchisee, except to the extent that the breach or default has been remedied or moneys owed have been paid.
Any waiver, extension of time or other indulgence granted by Franchisor or its agents, successors or assigns, with respect to the Franchise Agreement or any other agreement(s) by and between Franchisee and Franchisor, shall in no way modify or amend this Guarantee, which shall be continuing, absolute, unconditional and irrevocable.
It is understood and agreed by the undersigned that the provisions, covenants and conditions of this Guarantee shall inure to the benefit of the Franchisor, its successors and assigns. This Guarantee may be assigned by Franchisor voluntarily or by operation of law without reducing or modifying the liability of the undersigned hereunder.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has the right to proceed directly against the guarantors of the Franchise Agreement if the franchisee is in breach or default. Bonchon is not required to first proceed against the franchisee or name any other franchisee or signatory in such a suit.
Furthermore, the guarantors are responsible for Bonchon's costs of collection, including court costs, attorney's fees, expenses resulting from delays, travel, food, and lodging expenses related to court or arbitration appearances, and all other collection costs. Notice or demand upon the franchisee is considered notice to all guarantors, and no separate notice is required for the guarantors.
The guarantee remains in effect regardless of any cessation of liability or release of the franchisee or any other guarantors, unless the breach or default has been resolved or the money owed has been paid. Any extensions of time or waivers granted by Bonchon do not modify the guarantee, which is continuing, absolute, unconditional, and irrevocable. The guarantee benefits Bonchon and its successors and assigns and can be assigned by Bonchon without affecting the guarantors' liability.