If the Bonchon Franchise Agreement is terminated, what happens to the License Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The termination or expiration of this Agreement or of the Franchise Agreement for any reason whatsoever will not relieve Licensee of its obligations of confidentiality, protection and security under this Agreement, or of the restriction on copying and use as provided in this Agreement, with respect to the Bonchon Software.
Upon termination or expiration of this Agreement or of the Franchise Agreement for any reason, Licensee agrees to immediately return to Licensor the Bonchon Software, including, without limitation, all computer software, and return or delete any off-line copies the Licensee has of data that is proprietary to the Licensor, whether saved on memory drives, online or via other storage media (and any future technological substitutions for any of them).
9.02 Cross-Default
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, the termination or expiration of the Franchise Agreement will also affect the License Agreement. Specifically, the licensee is not relieved of their obligations regarding confidentiality, protection, and security related to the Bonchon Software. They must also adhere to restrictions on copying and use of the software as outlined in the agreement.
Upon termination or expiration of the Franchise Agreement, the franchisee, acting as the licensee, must immediately return to Bonchon (the licensor) the Bonchon Software. This includes all computer software. Additionally, the franchisee must return or delete any offline copies of proprietary data, whether stored on memory drives, online, or via other storage media.
Furthermore, any default or breach by the franchisee (licensee) of any agreement with Bonchon (licensor) or its affiliates is considered a default under the License Agreement. Conversely, any default or breach of the License Agreement is considered a default under all other agreements between Bonchon and the franchisee. If the default under another agreement would have allowed Bonchon to terminate the License Agreement, Bonchon has the right to terminate all other agreements with the franchisee.