factual

Within how many days after Bonchon receives notice of a proposed assignment or redemption can Bonchon request additional information?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

  • A. You must deliver to us a true and complete copy of the proposed assignee's offer (the "notice") including all its material terms and furnish to us any additional information concerning the proposed transaction and the proposed assignee that we reasonably request. Your submission of such information must be accompanied by the seller's representation and warranty that all of the information submitted to us is true, accurate, complete and correct in all respects and, if the seller is a business entity, you must also furnish us with an appropriate resolution of the business entity's governing body authorizing the proposed sale.
  • B. We shall have sixty (60) days following our receipt of the notice (or, if we request additional information, sixty (60) days following our receipt of the additional information) to conduct due diligence into the transaction. Our due diligence will be of the type, nature and scope customary for transactions similar to the proposed transaction at issue and, in connection with our due diligence, you agree to make available to us immediately upon demand all information, data, books, or written or electronic records which we may reasonably request and, as well, shall make available to us for inquiry each owner and Guarantor of your franchised Business, the General Manager of your Business and any other personnel we specify. As well, all of the requirements of your proposed assignee specified above in Section 14.04 of this Agreement must be complied with

  • C.

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

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has 60 days to conduct due diligence into a proposed assignment or redemption transaction. If Bonchon requests additional information regarding the transaction, this 60-day due diligence period begins upon Bonchon's receipt of the additional information.

This means that if a Bonchon franchisee proposes to assign their franchise to a new owner or undergo a redemption, they must provide Bonchon with a copy of the offer, including all material terms. Bonchon can then request additional information about the proposed transaction or assignee.

Bonchon's ability to request additional information allows them to thoroughly evaluate the proposed assignee and the terms of the transaction. This protects Bonchon's interests by ensuring that any new franchisee meets their standards and that the terms of the assignment are acceptable. The franchisee must provide accurate and complete information, as any misrepresentation could jeopardize the assignment.

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.