Under what financial condition will Bonchon relieve a franchisee from the direction to refurbish their restaurant?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon may require franchisees to update, remodel, refurbish, renovate, modify, or redesign their restaurant to meet the then-current standards. Generally, the franchisee bears the expense of these changes. However, Bonchon states that it will relieve a franchisee from this obligation under a specific financial condition.

Bonchon will relieve a franchisee from the refurbishment direction if, in Bonchon's sole opinion, the franchisee will be unable to amortize the additional investment required during the remaining term of the Franchise Agreement. This determination is made at Bonchon's discretion, providing them with the authority to assess the franchisee's financial situation and ability to handle the refurbishment costs.

However, there is a condition to this relief. Bonchon may extend the term of the Franchise Agreement to allow for a new schedule of amortization. If Bonchon extends the term, the franchisee will then be required to comply with the refurbishment direction. This means that while Bonchon may initially waive the refurbishment requirement due to financial constraints, they can reinstate it by offering an extended term to make the investment more manageable for the franchisee.