If Bonchon assumes the lease and then reassigns it, is Bonchon released from all prospective obligations of the lessee?

According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon assumes the obligations of the lessee under the lease and subsequently reassigns the lease to another franchisee, licensee, joint venture partner, or other designee, Bonchon will be released from all prospective obligations of the lessee. This provision applies after the expiration or sooner termination of the Franchise Agreement, provided Bonchon gives the landlord the required notice.

This clause protects Bonchon from long-term lease liabilities if a franchisee defaults or the franchise agreement ends. It allows Bonchon to maintain control over the restaurant location by stepping in as the lessee and then transferring the lease to a new operator. For a prospective franchisee, this indicates that Bonchon has a vested interest in ensuring the continuity of the business and the preservation of the brand's presence in the location.

However, it is important to note that this release from prospective obligations is contingent upon Bonchon actually reassigning the lease. If Bonchon assumes the lease but does not reassign it, they would likely remain responsible for the lease obligations. Additionally, the FDD states that the landlord must receive proper notice of the Franchise Agreement's expiration or termination for this clause to take effect.