Does the Bonchon franchisee represent that there are any pending or threatened legal actions that could affect their ability to fulfill the Franchise Agreement?

According to the 2025 Bonchon Franchise Disclosure Document, the franchisee represents and warrants that, as of the execution date of the Franchise Agreement, there are no pending or threatened legal actions, suits, proceedings, or investigations that could affect their ability to fulfill the agreement. This includes any actions in court, arbitration, or before any governmental agency. This representation extends to the franchisee's knowledge, as well as the knowledge of their officers, directors, principal shareholders, partners, members, managers, guarantors, and any other owner with a direct or indirect interest in the franchisee's business.

Furthermore, the franchisee also warrants that there is no basis for any claim, action, suit, proceeding, or investigation that could affect their assets, properties, rights, or business. This also includes their right to operate and use their assets, properties, or rights to carry on their business, and their ability to fulfill the duties, obligations, and responsibilities specified in the Franchise Agreement. This representation is critical for Bonchon as it ensures that the franchisee is entering the agreement without any known legal impediments that could hinder their performance.

This provision protects Bonchon by ensuring that the franchisee is not aware of any existing or potential legal issues that could disrupt the operation of the franchise. It also allows Bonchon to rely on the franchisee's due diligence in assessing their own legal standing before entering into the agreement. If the franchisee breaches this representation, it could have legal consequences and potentially lead to termination of the agreement.