Under the Bonchon Area Development Agreement guarantee, is notice to the Area Developer considered notice to the guarantors?

According to Bonchon's 2025 Franchise Disclosure Document, under the Guarantee of Bonchon Franchise LLC Area Development Agreement, any notice or demand upon the Area Developer is considered as notice or demand upon both the Area Developer and all guarantors. This means Bonchon does not need to provide separate notifications to the guarantors.

This clause simplifies communication for Bonchon, as they only need to inform the Area Developer of any relevant issues or demands. However, it places a responsibility on the Area Developer to keep the guarantors informed, as the guarantors are bound by the notice given to the Area Developer.

This arrangement is typical in franchise agreements where a guarantee is involved, as it streamlines the notification process and ensures that all parties are deemed to be aware of any relevant communications. Prospective Bonchon franchisees acting as Area Developers should ensure their guarantors are fully aware of this condition, so the guarantors understand they will be held responsible based on the communication with the Area Developer.