Under what conditions can Bonchon terminate the franchise agreement due to unavoidable delays or failure to perform?

According to Bonchon's 2025 Franchise Disclosure Document, Section 17.01 addresses unavoidable delays or failure to perform, also known as "Force Majeure." This section provides an exception to the franchisee's obligations under Article 6 of the agreement, which typically requires strict adherence to development schedules and operational timelines.

Bonchon may not hold the franchisee accountable for delays or failures to perform if they arise from causes beyond the franchisee's reasonable control. These causes can include, but are not limited to, acts of God, war, riots, strikes, fires, floods, and governmental regulations. However, the franchisee must demonstrate that they took all reasonable steps to mitigate the impact of the event and resume performance as soon as possible.

To invoke the Force Majeure clause, the Bonchon franchisee must provide prompt written notice to Bonchon, detailing the nature and expected duration of the delay or failure. The franchisee also has a continuing obligation to update Bonchon on the situation and their efforts to overcome the impediment. This clause protects the franchisee from termination if they experience legitimate, unavoidable disruptions, but it also places the burden on them to proactively communicate and mitigate the impact of such events.