Within how many days after the termination of the Bonchon Franchise Agreement can Bonchon exercise its option to purchase the franchised business's assets?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the termination or expiration of this Agreement for any reason, we, any of our affiliates, and/or any nominee or designee we name are hereby granted an option, exercisable within 30 days after the termination becomes effective, to purchase as soon as practicable thereafter (including any period necessary for the obtaining of governmental approvals and consents of the concerned lessor[s]) all of your operating assets relating to the franchised Business.
We may exclude from the assets we elect to purchase, cash or its equivalent and any leasehold improvements, equipment, fixtures, furnishings, signs, materials and supplies that are not necessary or appropriate (in function or quality) to the Restaurant's operation or that we have not approved as meeting the System standards, and the purchase price will reflect such exclusions.
The date on which such purchase is closed will be referred to as the "closing date".
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has the option to purchase the franchisee's business assets within 30 days after the termination of the Franchise Agreement becomes effective. This option extends to Bonchon, its affiliates, or any designated nominee. After exercising the option, the purchase will occur as soon as practicable, which may include time for obtaining necessary governmental approvals or lessor consents.
Bonchon may choose to exclude certain assets from the purchase, such as cash, leasehold improvements, or equipment that doesn't meet system standards. The purchase price will be adjusted to reflect these exclusions. The date the purchase is finalized is termed the "closing date."
This clause in the Bonchon Franchise Agreement is important for potential franchisees as it outlines the conditions under which Bonchon can buy the business's assets upon termination. It specifies the timeframe for exercising this option and the types of assets that may or may not be included in the purchase. Franchisees should understand these terms to be aware of their rights and obligations should the agreement be terminated.