Under what circumstances will the incentives described in the Bonchon Franchise Agreement Rider be terminated?

According to Bonchon's 2025 Franchise Disclosure Document, the incentives described in the Franchise Agreement Rider are subject to termination if the franchisee transfers the Franchise Agreement, either directly or indirectly, including through a change in ownership. This condition is explicitly outlined to prevent the transfer of benefits to a new owner who did not originally qualify for the incentive program.

This provision ensures that the incentives remain with the original franchisee who entered into the agreement with Bonchon and met the specific criteria to qualify for the program. The non-transferability clause protects Bonchon's interests by preventing franchisees from selling the incentives along with the franchise, which could devalue the incentive program and create an unfair advantage for subsequent owners.

For a prospective Bonchon franchisee, this means that the incentives are tied to their ownership and operation of the franchise. If they decide to sell or transfer the franchise, the new owner will not be able to take advantage of the original incentive program. This could affect the resale value of the franchise, as potential buyers would not receive the same benefits. Therefore, franchisees should carefully consider the implications of this clause before entering into the agreement and plan accordingly, understanding that the incentives are not a transferable asset.