In the Bonchon franchise agreement, how are provisions that allocate risk or limit liability treated after the agreement terminates?

According to Bonchon's 2025 Franchise Disclosure Document, the termination or expiration of the Franchise Agreement does not eliminate the franchisee's obligations to Bonchon. Specifically, any obligations that exist at the time of termination or expiration, as well as any obligations that naturally survive termination, remain in effect. This means that even after the agreement ends, certain provisions designed to allocate risk or limit liability will continue to bind the franchisee.

For example, if Bonchon terminates the agreement due to the franchisee's default or if the franchisee terminates by failing to make payments after receiving notice and an opportunity to cure, the franchisee is responsible for all losses and expenses Bonchon incurs as a result of the termination. This includes damages, costs, attorneys' and experts' fees, lost profits, lost opportunities, damage to Bonchon's trademarks and reputation, and costs associated with securing a new business at or near the restaurant location. Bonchon also retains a lien against the franchisee's assets to cover these amounts.

Additionally, the franchisee is required to "de-identify" the former Bonchon Restaurant location by removing all Bonchon branding and trade dress. If the franchisee fails to do so, Bonchon has the right to enter the location and make the necessary changes at the franchisee's expense. This highlights the importance of understanding all post-termination obligations within the Bonchon franchise agreement, as they can have significant financial implications even after the business ceases operation.