Upon expiration or termination of the Bonchon Development Agreement, what is the developer required to do regarding agreements necessary to effectuate the termination?

According to Bonchon's 2025 Franchise Disclosure Document, upon the expiration or termination of the Development Agreement, the developer must immediately execute all agreements necessary to effectuate the termination in a prompt and timely manner. This requirement ensures a smooth and legally sound conclusion to the relationship between Bonchon and the area developer.

This obligation is part of a broader set of responsibilities the developer has upon termination or expiration, including paying all outstanding sums to Bonchon, its affiliates, landlords, employees, taxing authorities, advertising agencies, and other third parties. If Bonchon terminates the agreement due to the developer's default, the developer is also responsible for covering Bonchon's losses and expenses resulting from the default or termination, including damages, costs, attorneys' fees, and experts' fees.

Additionally, the developer must adhere to post-termination covenants, such as non-compete clauses outlined in Article 11 of the agreement, and continue to protect Bonchon's confidential information, trade secrets, and know-how as specified in Article 10. These measures are designed to protect Bonchon's brand and business interests after the Development Agreement concludes.

Furthermore, the developer is required to take action to cancel any assumed name or equivalent registration containing the "Bonchon" proprietary mark or any other Bonchon proprietary mark within fifteen days following the termination or expiration of the agreement. If the developer fails to do so, Bonchon has the right to execute the necessary documents on the developer's behalf and at the developer's expense, with the developer irrevocably appointing Bonchon as their attorney-in-fact for this purpose.