During the term of the Bonchon franchise, can a franchisee be involved in a competing business?

t contract. | | | | s. | | | | You must arrange an inspection of the Bonchon Restaurant prior to |

| Provision | Section in Franchise Agreement* | Summary | |-------------------------------------------------------------------------------------------|---------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------| | | | the transfer and pay our On-site Inspection Upon Transfer Fee. Either you or the transferee must, at your/its expense, upgrade the Bonchon Restaurant to conform with then-current standards and specifications within the time we reasonably specify. t. You must pay us a transfer fee of $15,000 or such greater amount as is necessary to reimburse us for our reasonable costs and expenses associated with the application for transfer. Notwithstanding the foregoing, there will be no transfer fee if the assignee is a member of your immediate family. \nu. You must correct any existing deficiencies of the Restaurant of which we have notified you. (Subject to state law.) | | n. Our right of first | Section 14.06 | We can match any offer for your Business. (Subject to state law.) | | refusal to purchase | | | | your business | | | | o. Our option to purchase your business | Section 19.01 | We have the option to buy your franchised Business's assets upon termination or expiration. (Subject to state law.) | | p. Your death or disability | Section 14.05 | On your death or disability your rights pass to your "Estate". Your Estate may continue operating the Business if it provides an acceptable Operating Principal and General Manager. This Operating Principal must successfully complete our next Initial Training Program or Partner Training Program (as applicable) and assume full-time operation of the franchise within 1 month of your death or disability. From the date of your death or disability until an Operating Principal assumes full time control, we can operate your Business, but need not do so. See Item 6. Or, the Estate may sell the franchise in accordance with the requirements described in m. above. (Subject to state law.) | |

• q. Non-competition | Sections 12.02 | No involvement in competing business anywhere in U.S. (Subject to state law.) | | covenants during the | | | | term of the franchise

| | | | r. Non-competition | Section 12.02 | No competing business for 2 years within 20 miles of your Restaurant Location, or within 20 miles of any other franchised or company-owned Bonchon Business. (Subject to state law.) | | covenants after the | | | | franchise is terminated | | | | or expires | | | | s. Modification of the agreement | Sections 7.01, 27.01 | No oral modifications generally, but we may change the Manuals. Any Manuals change will not conflict with or materially alter your rights and obligations under the Franchise Agreement. | | t. Integration/ merger clause | Section 26.01 | Only the terms of the Franchise Agreement, the Exhibits to the Franchise Agreement and all agreements signed with it are enforceable (subject to state law). Any representations or promises outside of the Disclosure Document and Franchise Agreement may not be enforceable. | | u. Dispute resolution | N/A | No provision for arbitration or mediation. | | by arbitration or | | | | mediation | | | | v. Choice of forum | Section 32.04 | Litigation must be in New York, New York, except that we may bring an action for an injunction in any court with jurisdiction (see Franchise Agreement). (Subject to state law.) | | w. Choice of law | Section 32.03 | New York law applies. Your state law may supersede this provision and it may not be enforceable in your state. (Subject to state law.) | ^*Unless otherwise indicated, section references in the table above are to the Franchise Agreement.

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)