factual

Does the Bonchon franchise agreement hold the franchisee responsible for compliance with laws related to the provision of goods or services to customers, including providing customer service and handling refunds?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

9.01 Payments to Us**

In addition to all other payments under this Agreement, you agree to pay us (or our affiliates) immediately upon demand:

    1. All sales taxes, trademark license taxes and any other taxes, imposed on, required to be collected, or paid by us or our affiliates (excluding any corporate income taxes imposed on us or our affiliates) because we or our affiliates have furnished services or products to you or collected any fee from you.
    1. All amounts we advanced, or which we have paid, or for which we have become obligated to pay, on your behalf for any reason.
    1. All amounts due to us (or our affiliates) any other reason.

All payments due to us from you under this Agreement must be paid by check transmitted to our headquarters address, except that we reserve the right to require deposit of payments elsewhere and/or payment by wire transfer or other form of electronic funds transfer.

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9.02 Compliance with Franchise Agreement and Laws, Rules and Regulations

You agree to abide by and faithfully adhere to the terms of each Franchise Agreement signed pursuant to this Agreement.

You further agree, in regard to your area development business hereunder, to abide by and faithfully adhere to our confidential operating manuals (the "Manuals"). The Manuals may take the form of one or more of the following: one or more loose leaf or bound volumes; bulletins; notices; videos; CD-ROMS; computer software; other electronic media; online postings; e-mail and/or electronic communications; facsimiles; or, any other now or hereafter developed medium capable of conveying the Manuals' contents. The Manuals will, among other things, set forth our operating systems, procedures, policies, methods, standards, specifications and requirements for operating your franchised Business. You must at all times operate your area development business in strict compliance with the Manuals. We have the right to prescribe additions to, deletions from or revisions of the Manuals (the "Supplements to the Manuals"), all of which will be considered a part of the Manuals. All references to the Manuals in this Agreement will include the Supplements to the Manuals. Supplements to the Manuals will become binding on you as if originally set forth in the Manuals, upon being delivered to you.

You further agree to develop and operate the Bonchon Businesses in strict compliance with all applicable laws, rules and regulations of all governmental authorities; to comply with all applicable wage, hour and other laws and regulations of the federal, state and local governments; to prepare and file all necessary tax returns;

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, franchisees are responsible for operating their Bonchon businesses in strict compliance with all applicable laws, rules, and regulations. This includes adhering to federal, state, and local laws, as well as wage, hour, and other regulations. Franchisees must also handle all necessary tax returns and payments related to their Bonchon businesses and maintain all required licenses, permits, and governmental approvals. This indicates that Bonchon franchisees are responsible for complying with laws related to providing goods or services to customers.

Bonchon requires franchisees to abide by the terms of the Franchise Agreement and the confidential operating manuals, which outline the standards and requirements for operating the franchised business. These manuals may be delivered in various formats, including written documents, videos, software, and electronic communications. Franchisees must strictly adhere to these manuals and any supplements or revisions made to them.

Furthermore, the Franchise Agreement states that Bonchon may terminate the agreement if a franchisee does not comply with any federal, state, or local law or regulation applicable to the operation of the franchised business, and fails to correct the non-compliance within 15 days after notification. Bonchon also reserves the right to terminate the agreement if the franchisee violates any law, rule, or regulation that subjects the franchisee and/or Bonchon to widespread publicity, ridicule, or derision. These stipulations highlight the importance Bonchon places on franchisees' adherence to all applicable laws and regulations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.