Under what agreement does Bonchon grant the right and obligation to acquire and operate Bonchon Businesses in the Development Territory?

According to Bonchon's 2025 Franchise Disclosure Document, the right and obligation to acquire and operate Bonchon Businesses in the Development Territory is granted under the Area Development Agreement. This agreement stipulates that the developer must acquire and operate a minimum of two Bonchon Businesses within the designated Development Territory, adhering to the Development Schedule. These rights are subject to the terms outlined in the Area Development Agreement itself, as well as the individual Unit Franchise Agreements that will be entered into for each Bonchon Business.

The Area Development Agreement also defines the territorial rights granted to the developer. The developer is obligated to own and operate Bonchon Businesses within the Development Territory, which is described in Exhibit A of the agreement, using a map or written description. If there is a conflict between the written description and the map, the written description will take precedence. The right to operate a Bonchon Business is limited to the Protected Territories defined in the Franchise Agreement for each respective Bonchon Business.

Bonchon also retains specific rights within the Development Territory. Bonchon can engage in business activities and authorize others to do so, as long as it doesn't involve selling the same type of products or services under the Proprietary Marks that the franchisee's Bonchon Businesses offer, except as permitted in Section 3.02 of the agreement. Bonchon also has the right to sell Bonchon System products and services to national, regional, and institutional accounts, even within the Development Territory. The franchisee's timely performance of obligations under the Area Development Agreement, particularly those related to the Development Schedule, is critical and considered of the essence to the agreement.