After the termination of the second Successor Franchise Agreement, does Bonchon have an obligation to offer the franchisee a continued right to operate?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon is not obligated to offer a franchisee a continued right to operate their Bonchon business after the termination of the second Successor Franchise Agreement. At that point, the franchisee may be required to cease operating the restaurant as a Bonchon Restaurant and must comply with all post-termination obligations.

Sections 4.02 and 13.01 of the Bonchon Franchise Agreement outline the franchisee's right to enter into two consecutive Successor Franchise Agreements and the conditions that must be met to qualify for these agreements. This indicates that franchisees have the opportunity to extend their franchise term under certain conditions, but these extensions are limited to two successor agreements.

This policy has significant implications for prospective franchisees. It is essential to understand that the right to operate a Bonchon restaurant is not indefinite and is subject to Bonchon's discretion after the initial term and two potential successor terms. Franchisees should carefully consider the conditions required to qualify for Successor Franchise Agreements and the potential consequences of not being granted a continued right to operate after the second successor term.