Does the Bonchon Franchise Agreement limit Bonchon's rights to require changes for Co-Branding?

According to Bonchon's 2025 Franchise Disclosure Document, the Franchise Agreement does not place any limits on Bonchon's rights to require franchisees to make changes for Co-Branding. Bonchon may at times co-brand one or more restaurant concepts with Bonchon System Restaurants and/or offer for sale in Bonchon System Restaurants products sold in businesses operated by Bonchon and/or its affiliates. This co-branding may involve changes to the Proprietary Marks and may require franchisees to modify the building and premises of their Bonchon System Restaurant and the furnishing, fixtures, equipment, signs, and trade dress at their Bonchon System Restaurant. If a franchisee receives written notice of Bonchon's institution of Co-Branding, they must implement the Co-Branding at their franchised Business.

This means that Bonchon franchisees must be prepared to adapt their restaurants to accommodate co-branding initiatives, potentially incurring costs for modifications to their restaurant's physical appearance, signage, and offerings. This could involve significant investments and operational adjustments to align with Bonchon's strategic decisions regarding co-branding.

While co-branding can potentially increase revenue and attract new customers, franchisees should carefully consider the potential costs and disruptions associated with implementing these changes. It is important for prospective franchisees to discuss Bonchon's co-branding strategy and potential requirements in detail before signing the Franchise Agreement to fully understand the implications and financial obligations involved.