What proprietary data of Bonchon is subject to the security interest granted to the Licensor?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon franchisees grant the licensor a security interest in any proprietary data of Bonchon that is generated by or obtained via the Bonchon Software and other materials furnished under the License Agreement. This security interest serves as collateral for the franchisee's performance of all obligations under the License Agreement.

This means that Bonchon retains a legal claim on the data generated through the use of their software and materials. If a franchisee fails to meet their obligations under the License Agreement, Bonchon has the right to cease permitting access to the Bonchon Software and other licensed materials. This could include data related to sales, customer information, operational processes, and other business-critical information processed through Bonchon's systems.

For a prospective Bonchon franchisee, this highlights the importance of adhering to the terms of the License Agreement. Failure to do so could result in the loss of access to essential software and data, which could significantly impact the operation of the franchise. Franchisees should ensure they understand their obligations and the potential consequences of non-compliance. This is a fairly standard practice in franchising, as franchisors need to protect their intellectual property and ensure brand consistency across all locations.