What legend must be printed on the face of any securities or ownership interests issued by a Bonchon franchisee's business entity?

According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee operates as a business entity and issues securities or other ownership interests, a specific legend must be printed on the face of those documents. This legend informs any potential transferee that the transfer of the certificate and the interests it represents are subject to the terms and conditions of the Franchise Agreement with Bonchon Franchise LLC and the restrictive provisions within the organizational documents of the issuing entity. The legend also directs the recipient to refer to those documents for the specific terms of the restrictions.

This requirement ensures that any potential investor or transferee is fully aware of the limitations and obligations associated with owning an interest in the Bonchon franchise. It protects Bonchon by maintaining control over who becomes involved in the franchise system and ensuring compliance with the franchise agreement. The stop transfer instructions against the transfer on the business entity's corporate records further reinforce this control.

For a prospective Bonchon franchisee, this means that if they choose to operate their franchise through a corporation, LLC, or other business entity and plan to issue securities or ownership interests, they must include the prescribed legend on those documents. Failure to do so would be a violation of the franchise agreement. This requirement is typical in franchising, as franchisors want to maintain control over the ownership and management of their franchise locations to protect their brand and system standards.