Under the Bonchon Development Agreement, what is the franchisee obligated to do within the Development Territory?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee with area development rights has the obligation to acquire and operate a minimum number of Bonchon restaurants within their designated development territory, according to a pre-agreed development schedule. Specifically, the franchisee must acquire and operate no fewer than two Bonchon Businesses in the Development Territory.

The franchisee's obligations extend to adhering to the development schedule, which includes executing the Franchise Agreement for each Bonchon Business by the specified Due Date of Execution of the Lease and commencing operations by the applicable Commencement of Operations Date. Failure to meet these deadlines constitutes a material breach of the Development Agreement, potentially leading to its termination.

Bonchon emphasizes that timely performance of these obligations is critical to the agreement. However, the agreement acknowledges that unavoidable delays or force majeure events may occur, which could affect the franchisee's ability to meet the development schedule. The franchisee's exclusive rights to develop and operate Bonchon Businesses within a specific geographic trade area may terminate once the specified number of Bonchon Businesses in that area have been developed and commenced operations.