Does the filing of Bonchon franchises under the Franchise Investment Law of Hawaii constitute approval, recommendation, or endorsement by the Director of Regulatory Agencies?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
HAWAII ADDENDUM TO DISCLOSURE DOCUMENT
THESE FRANCHISES WILL BE/HAVE BEEN FILED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF HAWAII. FILING DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION OR ENDORSEMENT BY THE DIRECTOR OF REGULATORY AGENCIES OR A FINDING BY THE DIRECTOR OF REGULATORY AGENCIES THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE AND NOT MISLEADING.
THE FRANCHISE INVESTMENT LAW MAKES IT UNLAWFUL TO OFFER OR SELL ANY FRANCHISE IN THIS STATE WITHOUT FIRST PROVIDING TO THE PROSPECTIVE FRANCHISEE, OR SUBFRANCHISOR, AT LEAST SEVEN DAYS PRIOR TO THE EXECUTION BY THE PROSPECTIVE FRANCHISEE OF ANY BINDING FRANCHISE OR OTHER AGREEMENT, OR AT LEAST SEVEN DAYS PRIOR TO THE PAYMENT OF ANY CONSIDERATION BY THE FRANCHISEE, OR SUBFRANCHISOR, WHICHEVER OCCURS FIRST, A COPY OF THE OFFERING CIRCULAR, TOGETHER WITH A COPY OF ALL PROPOSED AGREEMENTS RELATING TO THE SALE OF THE FRANCHISE.
THIS OFFERING CIRCULAR CONTAINS A SUMMARY ONLY OF CERTAIN MATERIAL PROVISIONS OF THE FRANCHISE AGREEMENT. THE CONTRACT OR AGREEMENT SHOULD BE REFERRED TO FOR A STATEMENT OF ALL RIGHTS, CONDITIONS, RESTRICTIONS AND OBLIGATIONS OF BOTH THE FRANCHISOR AND THE FRANCHISEE.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the filing of Bonchon franchises under the Franchise Investment Law of the State of Hawaii does not constitute approval, recommendation, or endorsement by the Director of Regulatory Agencies. It also does not represent a finding by the Director of Regulatory Agencies that the information provided in the disclosure document is true, complete, and not misleading.
This disclaimer is a standard legal protection for regulatory bodies. It clarifies that the state's review of the franchise offering is for compliance purposes and does not signify an endorsement of the franchise's viability or the accuracy of the information provided by Bonchon. Prospective franchisees must conduct their own due diligence to assess the franchise opportunity.
Furthermore, the Hawaii Addendum to the Disclosure Document states that the Franchise Investment Law makes it unlawful to offer or sell any franchise in the state without first providing the prospective franchisee with a copy of the offering circular and all proposed agreements relating to the sale of the franchise at least seven days prior to the execution of any binding agreement or the payment of any consideration, whichever occurs first. This provision ensures that franchisees have adequate time to review the documents before committing to the franchise.
Finally, the disclosure document itself contains a summary of certain material provisions of the franchise agreement, and the contract or agreement should be referred to for a complete statement of all rights, conditions, restrictions, and obligations of both Bonchon and the franchisee. This highlights the importance of carefully reviewing the entire franchise agreement and seeking legal counsel to fully understand the terms and conditions of the franchise.