Under the Bonchon Franchise Agreement Rider – 2025 Existing Franchisee Development Incentive Program, what is the status of the program in California?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
irectly (including through a transfer of ownership), the incentives for the Restaurant described this Rider will immediately and automatically terminate.
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- Remaining Terms. Except as expressly amended hereby, the Franchise Agreement and all ancillary agreements executed in connection with the Franchise Agreement remain in full force and effect in accordance with the provisions thereof.
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- Governing Law; Construction; Enforcement. This Rider shall be governed by, construed and enforced in accordance with the same governing law, venue, dispute resolution and enforcement provisions as in the Franchise Agreement, mutatis mutandis.
[Signature page follows.]
IN WITNESS WHEREOF, the Franchisor and Franchisee execute this Rider to the Franchise Agreement effective as of the date of the Franchise Agreement.
BONCHON FRANCHISE LLC If a corporation or other entity: [ENTITY] By: Name: Title: Date: If an individual: By: Name: Date:
EXHIBIT G-2 – FRANCHISE AGREEMENT RIDER 2025 EXISTING FRANCHISEE DEVELOPMENT INCENTIVE PROGRAM (NEW AREA DEVELOPERS)
FRANCHISE AGREEMENT RIDER – 2025 DEVELOPMENT INCENTIVE PROGRAM
THIS FRANCHISE AGREEMENT RIDER – 2025 DEVELOPMENT INCENTIVE PROGRAM (this "Rider") supplements and amends that certain Franchise Agreement, dated as of (the "Franchise Agreement"), between Bonchon Franchise LLC ("Franchisor") and ("Franchisee"). This Rider is incorporated into the Franchise Agreement and is dated and effective as of the date of execution of the Franchise Agreement. In the event of any ambiguity or conflict between the terms of this Rider and the terms of the Franchise Agreement, the terms of this Rider shall control and prevail. All initial capitalized terms used but not defined in this Rider shall have the meanings given to those terms in the Franchise Agreement or the Area Development Agreement (as applicable). Background Simultaneously with signing this Rider, Franchisor and Franchisee are signing the Franchise Agreement, wherein Franchisee is granted the right and undertakes the obligation to operate a Bonchon Restaurant located at (the "Restaurant"). Franchisor and Franchisee are signing this Rider because, under an Area Development Agreement previously signed by Franchisor and Franchisee (or its approved affiliate) on (the "Area Development Agreement"), Franchisor committed (upon the satisfaction of certain conditions) to modify certain sections of each franchise agreement to be signed for certain Bonchon Restaurants to be developed under the Area Development Agreement where the Restaurant opens and commences operations in accordance with the terms of this Rider to reflect the incentives offered by Franchisor under a limited-time incentive program for new development (the "2025 Incentive Program"). As Franchisee is eligible to participate in Franchisor's 2025 Incentive Program, Franchise and Franchisee desire to modify certain sections of the Franchise Agreement to reflect the incentives offered under Franchisor's 2025 Incentive Program. NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises, commitments and understandings contained herein. Franchisor and Franchisee hereby agree as
AGREEMENT
follows:
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- Background Information. The information in the Background section at the beginning of this Rider is true and correct. This Rider will be interpreted by reference to the Background section, the Franchise Agreement, the Area Development Agreement and all related agreements. The accommodations under this Rider are being granted to Franchisee pursuant to negotiations initiated by Franchisee, at Franchisee's request and for Franchisee's benefit.
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- Initial Franchise Fee. Section 5.01 of the Franchise Agreement ("Initial Franchise Fee") is hereby amended to read as follows:
You agree, subject to the terms and conditions of the Franchise Agreement Rider – 2025 Development Incentive Program which you have executed in
connection with this Agreement, to pay us an Initial Franchise Fee of $20,000.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, the excerpts provided describe the general framework for the 2025 Existing Franchisee Development Incentive Program. It outlines the modifications to the standard franchise agreement for franchisees participating in the program. These modifications primarily concern the initial franchise fee and continuing royalty fees. However, the documents do not specify whether the program is active or available in California.
The Franchise Agreement Rider details that franchisees participating in the 2025 Development Incentive Program may benefit from a reduced initial franchise fee of $20,000. Additionally, for the first twelve months of operation, the continuing royalty fee is reduced to 2.5% of gross revenues, after which it increases to the standard 5.0%. These incentives are designed to support new development and expansion by existing franchisees who meet specific criteria and development timelines.
To determine the specific status and availability of the 2025 Existing Franchisee Development Incentive Program in California, prospective franchisees should directly inquire with Bonchon's franchise development team. They can provide detailed information on program eligibility, any geographical restrictions, and specific requirements for participation within the state. This direct communication will ensure that potential franchisees receive the most accurate and up-to-date information relevant to their investment decision.