What are the potential consequences if a Bonchon franchisee, their owners, or employees violate any anti-terrorism or anti-corruption laws?

According to Bonchon's 2025 Franchise Disclosure Document, a Bonchon franchise agreement can be terminated if the franchisee or any of their owners' assets, property, or interests are blocked under any law, ordinance, or regulation relating to terrorist activities. Termination can also occur if the franchisee or any of their owners otherwise violate any such law, ordinance, or regulation. This means that Bonchon takes violations of anti-terrorism laws very seriously and considers such violations a significant breach of the franchise agreement.

This clause protects Bonchon's brand and reputation by ensuring that its franchisees and their owners comply with all applicable laws and regulations related to terrorism. It also allows Bonchon to disassociate itself from any franchisee or owner involved in terrorist activities, which could damage the brand's image and goodwill. The inclusion of 'assets, property, or interests' indicates that even indirect connections to terrorism can trigger termination, showing a comprehensive approach to preventing association with such activities.

For a prospective franchisee, this means that they and their owners must undergo thorough background checks and ensure full compliance with all anti-terrorism laws and regulations. Failure to do so could result in the immediate termination of the franchise agreement and the loss of their investment. This clause highlights the importance of ethical and legal compliance in operating a Bonchon franchise and the potential consequences of failing to meet these standards.