What conditions must a Bonchon franchisee satisfy to have the right to enter into a Successor Franchise Agreement?

Your right to enter into a Successor Franchise Agreement will be conditioned on the following:

• A. We are still offering franchises in the area in which your Restaurant is located;
• B. You must notify us in writing no more than nine months and no less than six months before the expiration of the Initial Term of this Agreement of your intent to enter into

• a Successor Franchise Agreement;

• C.

Throughout the Initial Term and at the time of your successor term ("Successor Term") you (and your affiliates) must have performed all of your obligations and been, according to our business judgment, in compliance with the terms of this Agreement, the Manuals and other agreements between you (or your affiliates) and us or our affiliates;

• D.

At the time of your Successor Term you (and your affiliates) must be current on the payment of all monetary obligations to us, our affiliates, the lessor or sublessor of your Bonchon Restaurant and any material third party supplier of yours;

• E.

Before the commencement of the applicable Successor Term, you must, at your cost and expense, refurbish, redesign and/or remodel your franchised Bonchon Restaurant as we reasonably require to meet our then current standards, requirements and specifications (including, without limitation, refurbishing, repairing or replacing all equipment, electronic cash register systems, Computer and Point of Sale System and Other Technology, signs, interior and exterior decor items, fixtures, furnishings, supplies and other products and materials required for the operation of the Restaurant and otherwise upgrading the Restaurant as we reasonably require to reflect our then-current System standards and the image of the System);

• F.

You and/or your Operating Principal (as applicable) and any other management and staff we designate must attend and successfully complete any training that we may reasonably require, at your expense;

• G.

You must pay us a successor term fee of 25% of our then-current Initial Franchise Fee for Bonchon Businesses;

• H.

You must present evidence satisfactory to us that you will be able to renew the lease for your Bonchon Restaurant on terms acceptable both to you and us, or lease a substitute Restaurant Location acceptable to and approved by us, without any interruption of business in compliance with the terms of Section 6.07; and,

• I.

You (and if you are a business entity, your owners) must have signed our then-current form of General Release.

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