Under the Bonchon franchise agreement, does Bonchon's acceptance of a payment from the licensee constitute a waiver of any breach of any term, covenant, or condition of the agreement?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon's acceptance of a payment from a licensee does not constitute a waiver of any breach of the franchise agreement. Specifically, the FDD states that accepting payments from the franchisee will not be construed as a waiver of any term, covenant, or condition within the agreement. This protects Bonchon's right to enforce the agreement's terms, even if they continue to accept payments after a breach.

This provision means that even if a Bonchon franchisee violates a term of the agreement, Bonchon can still accept royalty payments or other fees without forfeiting their right to take action on the violation. Bonchon retains the right to demand full compliance with all terms, including the ability to terminate the agreement due to a breach, regardless of whether they have accepted payments.

For a prospective Bonchon franchisee, this clause highlights the importance of adhering to all terms of the franchise agreement. Franchisees cannot assume that continued acceptance of payments by Bonchon implies forgiveness or acceptance of any breaches. Franchisees should address any potential breaches promptly to avoid potential termination or other enforcement actions, even if Bonchon continues to accept payments. This is a fairly standard clause in franchise agreements, designed to protect the franchisor's rights and ensure consistent enforcement of brand standards and contractual obligations.