What is the Bonchon Accelerated Architectural Services Program (BAASP) designed to help franchisees do?

imum requirements for a Bonchon Restaurant.

Bonchon Accelerated Architectural Services Program

To assist franchisees in streamlining the development of their Restaurants, we offer qualified franchisees the opportunity to participate in our accelerated development program called the Bonchon Accelerated Architectural Services Program ("BAASP"). The goal of BAASP is to help franchisees shorten the construction process by allowing them to commence the construction planning and permitting process while they negotiate the terms of the lease for their Restaurant Location.

Once we have approved the site for your Restaurant Location, we will determine (in our sole business judgment) your eligibility to participate in BAASP based on the overall project timeline for the construction of your Restaurant and probability that the lease for your Restaurant Location will be executed. If we determine that your site qualifies for BAASP, then we will notify you of your eligibility

to participate in the program. You will have 3 business days from the date you receive our eligibility notice, to confirm if you wish to participate in BAASP. Once we receive confirmation of your participation, we will schedule an initial call with you and the Bonchon authorized architect ("AOR") to begin the design process. Bonchon will provide the AOR with the approved schematic and design documents along with all As-Built files provided by Bonchon's Real Estate Department. The AOR start the construction document generation. While you are negotiating the lease for your Restaurant Location, the AOR will complete the construction documents (architectural, mechanical, electrical, plumbing) plans within 45 days from either the AOR's: (i) receipt of the approved schematic and design documents and As-Built files or (ii) site visit, whichever occurs later. Upon final approval from Bonchon, the AOR will submit the construction documents to the corresponding municipality for a building permit. Once you and the landlord have signed the lease for the Restaurant Location and secured the requisite building and/or construction permit, then you may (upon our approval) commence constructing the Restaurant Location.

If the lease for your Restaurant Location is not executed due to the landlord withdrawing from the lease negotiation process, then Bonchon will assume the responsibility for paying the architectural fees owed to the AOR to date. If, however, you elect to cease lease negotiations and not execute the lease for your Restaurant Location because you refuse to (i) personally guaranty the terms of the lease or (ii) comply with a request from the landlord that would not (in our reasonable business judgment) impede your development and/or operation of your Restaurant, then you will be responsible for the architectural fees incurred to date per your architectural design services contract; provided that, the rent for your Restaurant Location is at or below market rate for the trade area and the estimated total development cost of the Restaurant falls within the cost range listed in the applicable table in Item 7 above.

Time to Open

You must open your Dine-In, Fast Casual or Delivery and Carryout Only Restaurant within 300 days after we sign your Franchise Agreement.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 45–60)