Is a Bonchon franchisee allowed to contest the validity or amount of taxes assessed on their franchised business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If any valid, applicable law or regulation of a competent governmental authority with jurisdiction over this Agreement or the parties to this Agreement limits our rights of termination under this Agreement or requires longer notice or cure periods than those set forth above, then this Agreement will be considered modified to conform to the minimum notice, cure periods or restrictions upon termination required by the laws and regulations. We will not, however, be precluded from contesting the validity, enforceability or application of the laws or regulations in any action, proceeding, hearing or dispute relating to this Agreement or the termination of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon is not precluded from contesting the validity, enforceability, or application of laws or regulations in any action, proceeding, hearing, or dispute relating to the Franchise Agreement or its termination. This clause ensures that Bonchon retains the right to challenge legal or regulatory decisions affecting the agreement.
This provision is included in a section regarding required notices. If any valid law or regulation limits Bonchon's termination rights or requires longer notice or cure periods, the agreement will be modified to conform to the minimum requirements of those laws and regulations.
In practical terms, this means that while Bonchon will adhere to mandatory legal requirements, it reserves the right to legally challenge the validity or applicability of those requirements. This could be relevant in situations where Bonchon believes a law or regulation is being misapplied or is unconstitutional. This clause protects Bonchon's interests by ensuring it can pursue legal remedies if it disagrees with legal or regulatory interpretations.