Under what circumstances would the cessation of liability of the Bonchon franchisee relieve the guarantors from liability?

According to Bonchon's 2025 Franchise Disclosure Document, the cessation of or release from liability of the franchisee may relieve the guarantors from liability under specific conditions. This occurs only to the extent that the franchisee's breach or default has been remedied or the moneys owed have been paid.

This provision means that if a Bonchon franchisee fails to meet their obligations under the Franchise Agreement or any other agreement with Bonchon, and this failure is subsequently resolved either through correcting the breach or settling the outstanding payments, the guarantors' liability is reduced accordingly. The guarantors remain liable for any unresolved breaches or unpaid amounts.

It is important to note that any waiver, extension of time, or other leniency granted by Bonchon does not modify or amend the guarantee, which remains continuing, absolute, unconditional, and irrevocable. This ensures that the franchisor's flexibility in working with the franchisee does not automatically release the guarantors from their obligations unless the specific default or breach is fully resolved through remediation or payment.