Under what circumstances do the incentives described in the Rider for Bonchon automatically terminate?

According to Bonchon's 2025 Franchise Disclosure Document, the incentives described in the Franchise Agreement Rider – 2025 Development Incentive Program are subject to automatic termination under specific conditions related to the transfer of the franchise agreement.

Specifically, if a Bonchon franchisee transfers the Franchise Agreement, whether directly or indirectly, including through a change in ownership, the incentives associated with the Restaurant as outlined in the Rider will immediately and automatically terminate. This provision ensures that the incentives are tied to the original franchisee and are not transferable to new ownership.

This condition is in place to maintain the integrity of the incentive program and to ensure that the benefits are only realized by those initially intended to receive them. The Rider also stipulates that all other terms and conditions of the Franchise Agreement remain in full effect, except as expressly amended by the Rider. This clause regarding the automatic termination of incentives upon transfer is a critical aspect for prospective franchisees to consider, as any plans to transfer ownership would result in the loss of these incentives.