What representation does a Bonchon franchisee make regarding the U.S. Treasury's Office of Foreign Assets Control (OFAC) list?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee makes a representation regarding laws relating to terrorist activities. Specifically, the franchisee represents that neither they nor any of their owners' assets, property, or interests are blocked under any law, ordinance, or regulation relating to terrorist activities. They also represent that neither they nor their owners violate any such law, ordinance, or regulation.

This representation is significant because it ensures that Bonchon does not conduct business with individuals or entities involved in or supporting terrorist activities. This is a standard practice for franchise systems to comply with U.S. laws and regulations, particularly those enforced by the Office of Foreign Assets Control (OFAC).

If a franchisee breaches this representation, it constitutes a default under the Franchise Agreement. This could lead to the termination of the agreement and the loss of the franchise. Prospective franchisees should ensure they and their owners are fully compliant with all applicable laws and regulations to avoid any potential issues.