Does the Bonchon agreement define 'Governmental Authority' in the context of the severability clause?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If any valid, applicable law or regulation of a competent governmental authority with jurisdiction over this Agreement or the parties to this Agreement limits our rights of termination under this Agreement or requires longer notice or cure periods than those set forth above, then this Agreement will be considered modified to conform to the minimum notice, cure periods or restrictions upon termination required by the laws and regulations. We will not, however, be precluded from contesting the validity, enforceability or application of the laws or regulations in any action, proceeding, hearing or dispute relating to this Agreement or the termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
The 2025 Bonchon Franchise Disclosure Document does not define the term "Governmental Authority" within the severability clause. However, the document does reference "governmental authority" in section 15.06, titled "Notice Required By Law," which states that if any law or regulation of a competent governmental authority with jurisdiction over the agreement limits Bonchon's termination rights or requires longer notice or cure periods, the agreement will be modified to conform to those minimum requirements. Bonchon retains the right to contest the validity, enforceability, or application of such laws or regulations.
While the term is not explicitly defined, the context suggests it refers to any government body with legal jurisdiction over the franchise agreement or the parties involved. This could include federal, state, or local government entities.
A prospective Bonchon franchisee should seek clarification from Bonchon regarding the interpretation and scope of "governmental authority" to fully understand their rights and obligations under the franchise agreement and how these might be affected by government regulations.