In the event of a franchisee's bankruptcy or insolvency proceeding, what costs, in addition to the principal claim, is Bonchon entitled to add to its proof of claim?

According to Bonchon's 2025 Franchise Disclosure Document, in the event of a franchisee's insolvency or bankruptcy proceeding, Bonchon is entitled to add costs of collection, interest, attorneys' fees, and experts' fees to their proof of claim, in addition to the principal claim.

This means that if a Bonchon franchisee declares bankruptcy, Bonchon can pursue not only the original debt owed but also additional expenses incurred during the collection process. These additional costs can include interest on the debt, legal fees for attorneys, and fees for expert consultants involved in the bankruptcy proceedings.

For a prospective franchisee, this highlights the importance of maintaining financial stability and adhering to the terms of the franchise agreement. Bankruptcy can result in significantly higher costs than just the initial debt, potentially exacerbating financial difficulties. Franchisees should carefully consider the financial risks and obligations associated with the franchise agreement to avoid such situations.