Does the agreement prevent either Bonchon or me from removing an action or proceeding from state to federal court?

According to Bonchon's 2025 Franchise Disclosure Document, the franchise agreement does not prevent either party from removing a case from state court to federal court. Specifically, Section 16.02 states that any action or proceeding will be brought in federal court if federal jurisdiction exists. The agreement explicitly clarifies that Section 16.02 should not be interpreted as preventing either party from moving a case from state to federal court.

This clause ensures that both Bonchon and the franchisee retain the right to have disputes heard in federal court if the legal requirements for federal jurisdiction are met. This can be important because federal courts may offer different procedural rules, judges with specific expertise, or a different body of case law that could be advantageous to one party or the other.

For a prospective Bonchon franchisee, this means they have the option to remove a case to federal court if the circumstances warrant it, and Bonchon retains the same right. This flexibility can be valuable in managing legal disputes and ensuring access to a potentially more favorable legal environment. Franchise agreements often include clauses about venue and jurisdiction, and this provision in the Bonchon agreement is relatively standard in preserving options for both parties.