What happens if a Bonchon franchisee fails to repay amounts advanced on their behalf by Bonchon or its affiliates?

You fail to immediately repay us or our affiliates for any amounts we advance on your behalf.

You do not purchase or maintain any insurance required by this Agreement.

You, your franchised Business, your Operating Principal, General Manager, Area Manager and/or your franchised Bonchon Restaurant commit any violation of law, rule or regulation and/or engagement in any act or practice which subjects you and/or us to widespread publicity, ridicule or derision.

You breach the provisions of this Agreement relating to advertising standards and do not cure this breach within three days following written notice from us.

You purchase any proprietary products or services from us or our affiliates, or purchase from us, our affiliates or any third-party non-proprietary goods or services pursuant to a systemwide supply contract we negotiate, and you use, divert, sell or otherwise exploit such products or services for the benefit of any other individual, entity or business.

You operate your franchised Business and/or your Bonchon Restaurant in a fashion that, in our sole judgment, in any way jeopardizes the life, health or safety of the general public, your customers and/or your employees.

If you do so, then not only may we terminate this Agreement upon notice, but you agree that we may either beforehand or concurrently direct you to immediately close your Bonchon Restaurant; you shall immediately comply with such direction (which may be given orally or in writing); and, you shall hold us harmless from and against any claims whatsoever relating to our direction to close your Restaurant.

Source: Item 23 — RECEIPTS (FDD pages 92–536)