Does the Bonchon franchise agreement bind affiliated or subsidiary firms of the licensee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee agrees that this Agreement binds the named Licensee and each of its employees, agents, representatives and persons associated with it. This Agreement further binds each affiliated and subsidiary firm, corporation, or other organization and any person, firm, corporation or other organization with which the Licensee may enter a joint venture or other cooperative enterprise.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the franchise agreement does extend to affiliated and subsidiary firms of the licensee. Specifically, the agreement binds not only the named licensee but also their employees, agents, representatives, and associated persons.
Furthermore, the Bonchon franchise agreement explicitly binds each affiliated and subsidiary firm, corporation, or other organization associated with the licensee. This also includes any person, firm, corporation, or other organization with which the licensee may enter into a joint venture or other cooperative enterprise.
This provision ensures that all entities and individuals connected to the licensee are held to the same standards and obligations under the franchise agreement, preventing potential loopholes or workarounds through related parties. Prospective franchisees should carefully consider the implications of this clause, especially if they plan to involve other business entities or partners in their Bonchon franchise.