Does a description of default in a notice from Bonchon limit Bonchon from specifying additional defaults in a lawsuit related to the Bonchon agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
of the foregoing, the acceptance of any payment specified to be paid by you under this Agreement will not be, nor be construed to be, a waiver of any breach of any term, covenant or condition of this Agreement.
We shall not be required to waive or impair any right, power, or option this Agreement reserves (including, without limitation, our right to demand exact compliance with every term, condition, and covenant or to terminate this Agreement before its term expires due to a breach) because of any custom or practice at variance with this Agreement's terms; our or your failure, refusal, or neglect to exercise any right under this Agreement or to insist upon the other's compliance with this Agreement, including, without limitation, any System standard; our waiver of or failure to exercise any right, power, or option, whether of the same, similar, or different nature, with other Bonchon Restaurants; the existence of area development agreements for other Restaurants which contain provisions different from those contained in this Agreement; or, our acceptance of any payments due from you after any breach of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon's acceptance of any payment from the franchisee does not constitute a waiver of any breach of the franchise agreement. Bonchon retains the right to demand strict compliance with every term, condition, and covenant within the agreement. This includes the right to terminate the agreement if a breach occurs. This right is not waived due to any custom or practice that varies from the agreement's terms, or due to Bonchon's failure to exercise any right under the agreement.
Bonchon's rights are further protected, as the FDD states that the failure to exercise a right or insist on compliance does not prevent Bonchon from doing so in the future. This applies whether the failure is of the same, similar, or different nature, even if other Bonchon restaurants have different arrangements or if Bonchon accepts payments after a breach.
Therefore, the terms within Bonchon's franchise agreement ensure that the brand retains its full rights and ability to enforce the agreement's provisions, even if it has not strictly enforced them in the past. This protects Bonchon's interests and ensures consistent application of the franchise terms.