In the event of expiration or termination of the Bonchon franchise agreement, what actions is Bonchon permitted to take regarding customers, suppliers, and other affected parties?

According to Bonchon's 2025 Franchise Disclosure Document, following the expiration or termination of the franchise agreement, Bonchon has specific rights regarding the franchisee's relationships with customers, suppliers, employees, and vendors. Bonchon can require the franchisee to immediately refrain from engaging in any contacts with these parties associated with the Bonchon business. This prevents the franchisee from potentially diverting business or disrupting relationships that Bonchon may want to maintain or transfer to a new franchisee.

Additionally, Bonchon has the right to enter and take possession of the Bonchon Restaurant to maintain continuous operation of the previously franchised business, provide for orderly change of management and disposition of personal property, and otherwise protect their interests. This is particularly relevant if the termination is due to the franchisee's default. Bonchon also has the option to operate the business during any dispute over the validity of the termination, pending a final court decision.

Furthermore, the franchisee must deliver to Bonchon all training manuals, confidential information, customer lists, records, and any materials bearing Bonchon's proprietary marks. The franchisee is prohibited from retaining copies of these items, ensuring that Bonchon maintains control over its brand assets and operational information. These stipulations collectively ensure that Bonchon can protect its brand, maintain business continuity, and manage relationships with key stakeholders after a franchise agreement ends.