Does the Bonchon franchise agreement permit franchisees to participate in a class action lawsuit against Bonchon as a representative or member of a class?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You and the other Franchisee Parties may only pursue any claim you have against us or the other Indemnitees in an individual legal action or proceeding. Neither you nor any other Franchisee Party shall join or combine its/their legal action or proceeding in any manner with any action or claim of any other Bonchon franchisee, franchise owner, franchisee guarantor, or other claimant, nor will you or any other Franchisee Party maintain any action or proceeding against us and the other Indemnitees in a class action, whether as a representative or as a member of a class or purported class, nor will you or any other Franchisee Party seek to consolidate, or consent to the consolidation of, all or part of any action or proceeding by any of them against us or the other Indemnitees with any other litigation against us or such other Indemnitees.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are restricted from participating in class action lawsuits against Bonchon. The franchise agreement stipulates that franchisees can only pursue claims against Bonchon in an individual legal action or proceeding.
Specifically, the agreement prohibits franchisees from joining or combining their legal actions with those of other Bonchon franchisees, franchise owners, or guarantors. Furthermore, franchisees are barred from initiating or maintaining any class action lawsuit against Bonchon, whether as a representative or a member of a class.
This clause also prevents franchisees from seeking or consenting to the consolidation of their legal actions against Bonchon with any other litigation against Bonchon. This means each franchisee must pursue any legal claims independently, without the possibility of joining forces with other franchisees who may have similar grievances. This type of clause is relatively common in franchise agreements.