Is a Bonchon franchisee allowed to provide access to Stripe Technology to any High-Risk Person?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must not use or otherwise export, re-export or transfer the Stripe Technology except as authorized by United States law and the laws of the jurisdiction(s) in which the Stripe Technology was distributed and obtained, including by providing access to Stripe Technology (a) to any individual or entity ordinarily resident in a High-Risk Jurisdiction; or (b) to any High-Risk Person. By using the Stripe Technology, you represent as of the Effective Date and warrant during the Term that you are not (x) located in or organized under the laws of any High-Risk Jurisdiction; (y) a High-Risk Person; or (z) owned 50% or more, or controlled, by individuals and entities (i) located in or, as applicable, organized under the laws of any High-Risk Jurisdiction; or (ii) any of whom or which is a High-Risk Person. You must not use the Stripe Technology for any purposes prohibited by Law, including the development, design, manufacture or production of missiles, nuclear, chemical or biological weapons.
"High-Risk Person" means any individual or entity that Stripe has deemed to be of particularly high risk, as identified on the Stripe Restricted Business List.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from providing access to Stripe Technology to any High-Risk Person. The FDD defines a "High-Risk Person" as any individual or entity that Stripe has deemed to be of particularly high risk, as identified on the Stripe Restricted Business List. This restriction is part of Bonchon's broader effort to comply with United States law and the laws of jurisdictions where the Stripe Technology is distributed.
This restriction has significant implications for a prospective Bonchon franchisee. It means that the franchisee must ensure that they are not providing access to Stripe Technology, which is likely used for payment processing, to individuals or entities that Stripe has identified as high risk. Failure to comply with this requirement could result in suspension of services by Stripe, as indicated in section 6.2 of the agreement, which lists conditions under which Stripe may suspend services, including violations of laws or terms, or engaging in activities that present unacceptable risk.
The franchisee also warrants that they are not located in or organized under the laws of any High-Risk Jurisdiction, are not a High-Risk Person, and are not owned or controlled by individuals or entities in High-Risk Jurisdictions or who are High-Risk Persons. This places a responsibility on the franchisee to conduct due diligence to ensure they meet these conditions. Bonchon's requirement aligns with standard practices in franchising, where franchisors often impose restrictions to protect their brand and ensure compliance with legal and financial regulations.
In summary, a Bonchon franchisee must be vigilant in ensuring they do not provide access to Stripe Technology to any High-Risk Person, as defined by Stripe, and must also ensure they themselves are not considered a High-Risk Person or associated with High-Risk Jurisdictions. This is a critical aspect of maintaining compliance and avoiding potential service disruptions.