What is the cure period for a Bonchon franchisee's failure to pay money owed to Bonchon, its affiliates, or any lender?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee has a shortened cure period of five calendar days to remedy a failure to pay money owed to Bonchon, its affiliates, or any lender that has provided financing to the franchisee's business. This five-day cure period begins after Bonchon transmits a written notice of default to the franchisee. If the franchisee fails to cure the default within this shortened period, the Franchise Agreement will terminate immediately upon the expiration of the cure period, unless a longer period is required by applicable law.

However, Bonchon reserves the right to terminate the Franchise Agreement immediately, without providing written notice of default, if any payment owed to Bonchon, its affiliates, or any lender is not made within 30 calendar days after its due date. This means that while a typical default might allow for a cure period, a payment that is more than 30 days overdue can result in immediate termination.

This policy highlights the critical importance of timely payments in maintaining a Bonchon franchise. The shortened cure period of five days for monetary defaults, compared to the standard 15 days for other defaults, underscores the seriousness with which Bonchon views financial obligations. Franchisees need to be diligent in managing their finances to avoid the risk of immediate termination for late payments.