What conditions must a Bonchon franchisee meet regarding payments to be eligible for a Successor Term?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee's eligibility for a Successor Term is contingent upon meeting certain payment obligations. Specifically, the franchisee (and their affiliates) must be current on all monetary obligations at the time of the Successor Term. This encompasses payments due to Bonchon, its affiliates, the lessor or sublessor of the Bonchon Restaurant location, and any material third-party supplier.

This requirement ensures that franchisees seeking to renew their agreement have maintained good financial standing with all relevant parties. Failing to meet these payment obligations could prevent a franchisee from being granted a Successor Term, regardless of their operational performance or other qualifications.

In addition to being current on payments, the franchisee must also pay Bonchon a successor term fee equal to 25% of the then-current Initial Franchise Fee for Bonchon Businesses. This fee is a standard part of the renewal process and compensates Bonchon for extending the franchise agreement. Meeting all these financial obligations is crucial for a Bonchon franchisee to secure their right to continue operating under the Bonchon brand beyond the initial term.