Under what conditions can Bonchon cease permitting access to its software and other licensed materials due to a Licensee's default?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can cease a licensee's access to its software and other licensed materials if the licensee defaults on any of their obligations under the franchise agreement. Bonchon retains a security interest in any proprietary data generated by or obtained through the Bonchon software and other furnished materials. This security interest serves as collateral for the licensee's performance of all obligations under the agreement.

Bonchon has the right, without incurring liability, to stop a licensee from accessing the Bonchon software and other licensed materials. This action can be taken with or without prior notice to the licensee. The trigger for this cessation of access is a default in any of the licensee's obligations as defined in the franchise agreement.

This clause gives Bonchon a significant degree of control over a franchisee's access to essential operational tools if the franchisee fails to meet their contractual obligations. Prospective franchisees should carefully review the franchise agreement to fully understand what constitutes a default and the potential consequences, including the loss of access to the Bonchon software and other licensed materials necessary for running the business.