If a default under another agreement would have permitted Bonchon to terminate the franchise agreement, what right does Bonchon have regarding other agreements?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Any default or breach by Licensee (or any of its affiliates) of any other agreement between Licensor, or its parent or the subsidiary, affiliate or designee of either entity (collectively, Licensor's "Affiliates") and Licensee (or any of its affiliates) will be deemed a default under this Agreement, and any default or breach of this Agreement by Licensee (or any of its affiliates) will be deemed a default or breach under any and all other agreements between Licensor (or any of its Affiliates) and Licensee (or any of its affiliates). If the nature of such default under any other agreement would have permitted Licensor to terminate this Agreement if default had occurred under this Agreement, then Licensor (or its Affiliates) will have the right to terminate all the other agreements between Licensor (or its Affiliates) and Licensee (or any of its affiliates) in the same manner provided for in this Agreement for termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a cross-default provision exists between Bonchon and its franchisees. Specifically, if a franchisee (or its affiliates) defaults or breaches any agreement with Bonchon (or its affiliates), it will be considered a default under the franchise agreement.
Conversely, any default or breach of the franchise agreement by the franchisee (or its affiliates) is considered a default or breach under all other agreements between Bonchon (or its affiliates) and the franchisee (or its affiliates).
If a default under another agreement would have allowed Bonchon to terminate the franchise agreement had the default occurred under the franchise agreement itself, then Bonchon has the right to terminate all other agreements between Bonchon (or its affiliates) and the franchisee (or its affiliates). This provision ensures that Bonchon can take comprehensive action across all agreements if a franchisee fails to meet their obligations under any one of them.