Can a Bonchon franchisee obligate Bonchon for any expenses without prior written approval?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not, without our prior written approval, have any power to obligate us for any expenses, liabilities or other obligations, other than as specifically provided in this Agreement. Except as expressly provided in this Agreement, we may not control or have access to your funds or the expenditure of your funds or in any other way exercise dominion or control over your Business. Except as otherwise expressly authorized by this agreement, neither party will make any express or implied agreements, warranties, guarantees or representations or incur any debt in the name of or on behalf of the other party, or represent that the relationship between us and you is other than that of franchisor and franchisee. We do not assume any liability, and will not be considered liable, for any agreements, representations, or warranties made by you which are not expressly authorized under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee cannot obligate Bonchon for any expenses, liabilities, or other obligations without prior written approval, unless specifically provided for in the Franchise Agreement. Bonchon also cannot control or have access to the franchisee's funds, or exercise control over the business, except as expressly provided in the agreement.
Neither party can make agreements, warranties, guarantees, or representations, or incur debt in the name of or on behalf of the other party, unless expressly authorized. The relationship between Bonchon and the franchisee is strictly that of franchisor and franchisee. Bonchon does not assume liability for any unauthorized agreements, representations, or warranties made by the franchisee.
This provision protects Bonchon from being held liable for unauthorized actions or debts incurred by its franchisees. It also ensures that franchisees understand they are operating independent businesses and are responsible for their own financial obligations, fostering a clear delineation of responsibilities and liabilities between the franchisor and franchisee.