What constitutes a default of the Bonchon franchise agreement?

15.01 Termination By Us – Automatic Termination Without Notice

You will be in default of this Agreement, and all rights granted in this Agreement will immediately and automatically terminate and revert to us without notice to you, if: you become insolvent; you or any of the Bonchon Businesses or any Guarantor is adjudicated as bankrupt or insolvent; all or a substantial part of the assets thereof are assigned to or for the benefit of any creditor or creditors; a petition in bankruptcy is filed by or against you or any of the Bonchon Businesses or Guarantor thereof and is not immediately contested and/or dismissed within sixty days from filing; you admit in writing your inability to pay your debts when due; you, your franchised Business(es) and any affiliate or Guarantor thereof cause, permit or acquiesce in an order for relief under the U.S. Bankruptcy Code or any other applicable federal or state bankruptcy, insolvency, reorganization, receivership or other similar law now or hereafter in effect, or consent to the entry for

• 1. You or any of your affiliates fail, refuse or neglect to pay promptly when due any money owed to us, our affiliates or any lender which has provided financing to your franchised Business. The cure period for this default shall not be the above-referenced fifteen calendar days but, instead, will be five calendar days after we transmit to you a written notice or default. If you fail to cure any such default within such shortened cure period, then this Agreement will terminate immediately upon expiration of the applicable cure period, or any longer period required by applicable law. Notwithstanding the foregoing, we may terminate this Agreement immediately (without providing you with written notice of default) if any payment you owe to us, our affiliates or any lender which has provided financing to your franchised Business under any arrangement with us is not made within 30 calendar days after its due date.
• 1. You fail, refuse or neglect to submit the financial and non-financial reports and other information required to be submitted to us under this Agreement, our Manuals or other written notices we transmit to you, or you make any false statements in connection with any reports or other information required to be submitted to us.
• 1. Your franchised Business and/or Bonchon /Restaurant offers and sells any products or services that we do not authorize under this Agreement or our Manuals.

You fail to maintain your trade accounts in a current status and/or fail to seek to promptly resolve any disputes with trade suppliers.

You engage in any business, or market any product or service, under a name or mark which, in our opinion, is confusingly similar to the Proprietary Marks.

You fail to pay any taxes due and owing by your franchised Business (including employee taxes) when due.

You do not use the Proprietary Marks and/or trade dress solely in the manner and for the purposes directed by us in this Agreement, our Manuals or otherwise.

You violate the restrictions pertaining to advertising or do not participate in the programs related to advertising and sales promotion set forth in Section 8.23 and Article 10 of this Agreement.

You do not indemnify us and/or one of the Indemnitees as required by this Agreement.

You fail to immediately endorse and tender to us any payment which is due us or our affiliates but is made to your order.

You make any use of our Confidential Information and/or Proprietary Marks not specifically authorized by this Agreement or our Manuals, or you directly or indirectly utilize or devote same for the benefit of any individual or entity other than your franchised Business.

You interfere or attempt to interfere with our ability or right to franchise or license others to use and employ the Bonchon System and/or Proprietary Marks.

You interfere or attempt to interfere, through any means or manner, with our relationships with any other Bonchon franchisee, any supplier of yours or ours, any government authority, or any other third-party individual or entity.

You engage in any act or conduct, or fail to engage in any act or conduct, which under this Agreement specifically authorizes us to terminate this Agreement immediately upon notice to you.

You default under any agreement between you and any lessor or sublessor of your Restaurant Location and you do not cure the default within the period specified in the Location's lease or sublease (as applicable).

• 1. You fail, on two or more occasions within any twelve (12) month period, to operate your Bonchon Business during the days and hours specified in our Manuals without our advance written approval.
• 1. You or any of your owners' assets, property, or interests are blocked under any law, ordinance, or regulation relating to terrorist activities, or you or any of your owners otherwise violate any such law, ordinance, or regulation.
• 1. Per Section 17.06 ("Cross-Default"), you (or any of your owners) fail to cure within the applicable time period any breaches under this Agreement, or any other agreement between you (or any of your affiliates) and us (or any of our affiliates) including, but not limited to, any other franchise agreement, area development agreement, lease or promissory note.

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