Under the Bonchon Franchise Agreement guarantee, is notice to the franchisee considered notice to all guarantors?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Any Guarantor fails to comply with any of the requirements imposed by or pursuant to the Guarantee (annexed as Exhibit H hereto) addressed in Section 33.02 of this Agreement.
A final judgment not subject to appeal is entered against you or any Guarantor and remains unsatisfied for more than thirty days or, if any such judgment is subject to appeal, you do not prosecute such appeal within thirty days (or such shorter period as any law, rule or regulation requires).
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, whether notice to the franchisee constitutes notice to all guarantors under the Franchise Agreement's guarantee is not explicitly detailed in the provided excerpts. However, the document does state some conditions under which a guarantor may be held liable. Specifically, if any Guarantor fails to comply with any of the requirements imposed by or pursuant to the Guarantee (annexed as Exhibit H hereto) addressed in Section 33.02 of this Agreement, it is considered a default of the agreement. Also, a final judgment against any Guarantor that remains unsatisfied for more than thirty days can be considered a default.
Because the FDD excerpts do not specify whether notice to the franchisee serves as notice to the guarantor, prospective Bonchon franchisees should clarify this aspect with Bonchon during their due diligence. Understanding the exact notification protocols is crucial, as a failure to comply with the guarantee's terms by any guarantor constitutes a default under the Franchise Agreement. This could lead to potential termination of the agreement, highlighting the importance of clear communication channels and adherence to all contractual obligations.
In typical franchise agreements, notice provisions are clearly defined to avoid ambiguity and ensure all parties are informed of critical matters. Therefore, it is essential for potential franchisees to seek explicit confirmation from Bonchon regarding the notification process for guarantors to fully understand their responsibilities and potential liabilities under the Franchise Agreement.