For Bonchon Area Development Agreements issued in North Dakota, is any provision designating jurisdiction or venue outside of North Dakota enforced?

According to Bonchon's 2025 Franchise Disclosure Document, any provision in the Area Development Agreement that designates jurisdiction or venue outside of North Dakota is deleted from Area Development Agreements issued in North Dakota. This means that Bonchon franchisees in North Dakota will not be required to litigate or arbitrate disputes in a forum outside of North Dakota.

This protection is formalized through a North Dakota Addendum to the Area Development Agreement. This addendum specifically overrides any conflicting provisions in the standard Area Development Agreement, ensuring that North Dakota law and venue apply. The addendum also stipulates that the site of any arbitration must be agreeable to all parties involved.

This is a significant benefit for prospective Bonchon area developers in North Dakota, as it ensures that legal proceedings will occur within the state, potentially reducing travel costs and making it easier to secure local legal representation. It also provides a level of legal certainty, as North Dakota laws will govern the agreement rather than those of another state like New York, which is referenced in the standard agreement.