Under the Bonchon Service Agreement Summary, what is the consequence if the Service Agreement is not signed and returned by the franchisee?
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, failing to sign and return the Franchise Agreement in a timely manner constitutes a material and incurable breach of the Area Development Agreement. Bonchon can terminate the Area Development Agreement immediately upon notice, without providing an opportunity to cure the breach, unless Bonchon chooses to waive the breach.
If Bonchon terminates the Area Development Agreement due to the franchisee's failure to sign and return the Franchise Agreement, all funds paid to Bonchon will be considered earned by Bonchon. The initial franchise fee will not be refunded.
Additionally, the franchisee must immediately execute Bonchon's then-current form of General Release in favor of Bonchon and its affiliates. This means the franchisee releases Bonchon from any potential claims or liabilities. This clause emphasizes the importance of adhering to the timelines and procedures outlined in the Area Development Agreement to avoid termination and financial loss.