After termination or expiration of the Bonchon Franchise Agreement, what action must a franchisee take regarding assumed names containing Bonchon's proprietary marks?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee must take specific actions regarding assumed names containing Bonchon's proprietary marks upon termination or expiration of the Franchise Agreement. Within fifteen days following the termination or expiration of the Agreement, the franchisee must take all necessary steps to cancel any assumed name or equivalent registration that includes the proprietary mark "Bonchon" or any other Bonchon proprietary mark or variant thereof.

This requirement ensures that the franchisee no longer uses Bonchon's brand name or trademarks after the agreement ends. This prevents any potential confusion among the public and protects Bonchon's brand identity. It also stops the former franchisee from benefiting from Bonchon's goodwill and reputation after the franchise relationship has ended.

If the franchisee fails to comply with this requirement, Bonchon has the right to act on behalf of the franchisee to cancel the assumed name registrations. Bonchon is irrevocably appointed as the franchisee's attorney-in-fact to execute all necessary documents to discontinue the use of the name "Bonchon" or any related name used under the Franchise Agreement. This provision ensures Bonchon can promptly protect its brand and trademarks, even if the former franchisee is uncooperative.

This is a standard practice in franchising. Franchisors typically require franchisees to cease using their trademarks and trade names upon termination or expiration of the franchise agreement to protect the brand's integrity and prevent unauthorized use. The timeframe of fifteen days is relatively common, allowing the franchisee a short period to handle the administrative tasks associated with the cancellation.