What is the duration of the warranty that a Bonchon franchisee provides regarding their location and High-Risk status?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must not use or otherwise export, re-export or transfer the Stripe Technology except as authorized by United States law and the laws of the jurisdiction(s) in which the Stripe Technology was distributed and obtained, including by providing access to Stripe Technology (a) to any individual or entity ordinarily resident in a High-Risk Jurisdiction; or (b) to any High-Risk Person. By using the Stripe Technology, you represent as of the Effective Date and warrant during the Term that you are not (x) located in or organized under the laws of any High-Risk Jurisdiction; (y) a High-Risk Person; or (z) owned 50% or more, or controlled, by individuals and entities (i) located in or, as applicable, organized under the laws of any High-Risk Jurisdiction; or (ii) any of whom or which is a High-Risk Person. You must not use the Stripe Technology for any purposes prohibited by Law, including the development, design, manufacture or production of missiles, nuclear, chemical or biological weapons.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the franchisee provides an ongoing warranty regarding their location and High-Risk status for the duration of the agreement. Specifically, the franchisee represents as of the Effective Date and warrants during the Term that they are not located in or organized under the laws of any High-Risk Jurisdiction; are not a High-Risk Person; or owned 50% or more, or controlled, by individuals and entities located in High-Risk Jurisdictions or who are High-Risk Persons.
This means that throughout the entire term of the franchise agreement, the franchisee must continuously meet these conditions. If there is a change in circumstances that causes the franchisee to fall under any of the prohibited categories (e.g., moving to a High-Risk Jurisdiction or becoming a High-Risk Person), it could potentially be a breach of the franchise agreement.
This warranty is tied to the use of Stripe Technology for payment processing, and it ensures compliance with United States law and the laws of the jurisdictions where the Stripe Technology is distributed. It also prevents the use of Stripe Technology for purposes prohibited by law, such as the development of weapons. A prospective franchisee should carefully consider these obligations and ensure they can comply with them throughout the term of the agreement.