Is dispute resolution by arbitration or mediation applicable to the Bonchon Area Development Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Area Development Agreement | Summary |
|---|---|---|
| u. Dispute resolution by | None | Not applicable. |
| arbitration or mediation |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, dispute resolution by arbitration or mediation is not applicable to the Area Development Agreement. The FDD indicates that the Area Development Agreement does not include provisions for dispute resolution through arbitration or mediation.
Instead, the Bonchon Area Development Agreement specifies that litigation must occur in New York, New York. However, Bonchon retains the right to pursue injunctive relief in any court that has jurisdiction. It is important to note that these stipulations are subject to state law, which may supersede the choice of law provision.
Therefore, a prospective Bonchon franchisee should be aware that any legal disputes related to the Area Development Agreement will likely be resolved through litigation in New York, unless state law dictates otherwise. Franchisees should consult with a legal professional to understand how these provisions apply in their specific state.