What constitutes a default related to advertising or sales promotion programs for a Bonchon franchisee?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee will be in default if they violate the restrictions pertaining to advertising or do not participate in the programs related to advertising and sales promotion as outlined in Section 8.23 and Article 10 of the Franchise Agreement. This means Bonchon franchisees must adhere to the advertising guidelines and participate in required advertising programs to remain in compliance with their franchise agreement.

The FDD defines "advertising" broadly to include print and broadcast ads, direct mail, brochures, electronic communications, internet advertising, public relations, and any other material Bonchon designates as advertising in its manuals. Franchisees must submit all proposed advertising materials to Bonchon for approval before use, except for materials provided by Bonchon or previously approved materials. Bonchon's approval can be withheld for any reason, and failure to respond within ten business days is considered a denial. Approved materials cannot be used if the approval is more than 12 months old.

Bonchon may require franchisees to include a notice that franchises are available in their advertising materials. Franchisees must also conduct local advertising according to the requirements in Bonchon’s manuals, which may restrict advertising to customers near other Bonchon restaurants. Bonchon also manages the Bonchon System Brand Fund, which franchisees contribute to, and Bonchon has sole control over the advertising programs funded by it. Franchisees must participate in regional advertising cooperatives if established, contributing between 1% and 4% of gross revenues, and can receive credit against their local advertising requirements for these contributions.