Under what circumstances related to criminal convictions can the Bonchon franchise agreement be terminated?

According to Bonchon's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if the franchisee, their Operating Principal, General Manager, or any owner, member, shareholder, director, or manager of a business entity franchisee is convicted of certain crimes. Specifically, a conviction for a felony, fraud, a crime involving moral turpitude, or any other crime or offense that Bonchon reasonably believes is related to the operation of the franchised business can lead to termination. This also applies if the conviction is likely to have an adverse effect on the Bonchon System, the Proprietary Marks, the goodwill associated with the Proprietary Marks, or Bonchon's interest in the System or Proprietary Marks.

This provision gives Bonchon broad discretion to terminate the agreement based on criminal convictions, even if the crime is not directly related to the operation of the franchise. The key factor is whether Bonchon reasonably believes the crime could negatively impact the brand or the system. This clause protects Bonchon's brand reputation and goodwill, which are critical assets for any franchise system.

For a prospective franchisee, this means that any criminal conviction, even one seemingly unrelated to the business, could jeopardize their franchise agreement. It is crucial to maintain a clean criminal record and ensure that all individuals associated with the franchise operation do the same. Franchisees should seek legal counsel if they or someone associated with their business faces criminal charges to understand the potential implications for their franchise agreement with Bonchon.