Under what condition can Bonchon terminate the franchise agreement immediately without providing written notice of default related to payments?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can terminate the franchise agreement immediately without providing written notice of default if a payment owed to Bonchon, its affiliates, or any lender that has provided financing to the franchisee's business is not made within 30 calendar days after its due date.

This means that if a franchisee fails to make a payment to Bonchon, its affiliates, or a lender within 30 calendar days of the due date, Bonchon has the right to terminate the franchise agreement immediately. This is a stricter condition than the standard default, which allows for a five-day cure period after written notice. This clause underscores the critical importance of timely payments in maintaining a Bonchon franchise.

For a prospective franchisee, this highlights the need for meticulous financial management and planning. Missing a payment by more than 30 days can lead to immediate termination of the agreement, resulting in significant financial and operational disruption. Franchisees should ensure they have sufficient financial resources and systems in place to meet all payment obligations promptly to avoid such a situation.