Under what condition will the Bonchon License Agreement remain in full force?

According to Bonchon's 2025 Franchise Disclosure Document, the License Agreement remains in full effect as long as the franchisee remains in good standing under the Franchise Agreement. The Franchise Agreement is incorporated into the License Agreement, meaning that the terms and conditions of the Franchise Agreement directly impact the License Agreement.

For a prospective Bonchon franchisee, this means that maintaining compliance with the Franchise Agreement is crucial for the License Agreement to remain valid. Failure to adhere to the Franchise Agreement's terms could lead to a breach, potentially resulting in the termination of both agreements. This interconnectedness underscores the importance of understanding and fulfilling all obligations outlined in both the Franchise Agreement and the License Agreement.

This condition is fairly standard in franchising, as the license to use the brand's intellectual property (covered in the License Agreement) is contingent upon the franchisee's adherence to the operational and financial requirements of the franchise system (covered in the Franchise Agreement). Franchisees should pay close attention to the definition of "good standing" within their Franchise Agreement to fully understand what is required to maintain their franchise rights and avoid any potential issues.