Is a Bonchon franchisee required to defend Bonchon against claims arising from crimes committed near the franchisee's business premises?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that you will, at your sole cost, at all times defend us, any affiliate of ours, the affiliates, subsidiaries, successors, assigns and designees of each; and, the officers, directors, managers, employees, agents, attorneys, shareholders, owners, members, designees and representatives of all of the foregoing (we and all others referenced above being the "Indemnitees"), and indemnify, reimburse and hold harmless us and the Indemnitees to the fullest extent permitted by law, from all claims, losses, liabilities and costs incurred in connection with any judicial, administrative or arbitration action or proceeding (including bankruptcy, insolvency, debtor/creditor or similar proceedings), suit, claim, demand, investigation, or formal or informal inquiry (regardless of whether any of the foregoing is reduced to judgment) or any settlement of the foregoing, which actually or allegedly, directly or indirectly, arises out of, is based upon, is a result of or is related in any way to any element of your entry into this Agreement; your establishment, construction, opening and operation of your Bonchon Restaurant and franchised Business, including any other business operating within or in relation to the Restaurant (which other business, if any, shall be subsumed within this paragraph's references to the Restaurant) and further including (without limitation) any personal, bodily or mental injury, death, property damage or loss, suffered by any customer, visitor, manager, operator, supplier, employee or guest of the franchised Restaurant or Business; crimes committed on or near any of the premises or facilities of your franchised Business or vehicles used by your franchised Business; all acts, errors, neglects or omissions engaged in by you, your contractors or subcontractors, as well as any third party, arising out of or related to the design, construction, conversion, build-out, outfitting, remodeling, renovation or upgrading of your Bonchon Restaurant, whether or not any of the foregoing was approved by us; defects in any Bonchon Restaurant you construct and/or operate, whether or not discoverable by you or by us; all acts, errors, neglects or omissions of you or the franchised Business and/or the owners, officers, directors,
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to defend Bonchon against claims arising from crimes committed on or near the franchisee's business. Specifically, the franchisee must defend and indemnify Bonchon and its related parties from claims, losses, liabilities, and costs related to any formal or informal inquiry that arises out of or is related to crimes committed on or near the premises or facilities of the franchised business. This obligation is at the franchisee's sole cost.
This means that if a crime occurs near a Bonchon restaurant, and a claim is made against Bonchon, the franchisee is responsible for defending Bonchon in any legal proceedings. This includes covering legal costs and any potential settlements or judgments. This requirement extends to any personal, bodily, or mental injury, death, property damage, or loss suffered by any customer, visitor, manager, operator, supplier, employee, or guest of the franchised restaurant or business.
The franchisee's responsibility to defend Bonchon also applies to other aspects of the business, including injuries, property damage, and claims related to the franchisee's actions or omissions. This indemnification extends to claims related to the franchisee's violation of privacy laws, unauthorized use of proprietary marks, or any breach of the franchise agreement. The franchisee must also defend Bonchon against claims that Bonchon is the employer or joint employer of the franchisee's employees.
This broad indemnification clause places a significant responsibility on Bonchon franchisees to protect Bonchon from a wide range of potential liabilities. Prospective franchisees should carefully consider the potential costs and risks associated with this obligation, including the cost of legal representation and potential financial exposure from claims. Franchisees should consult with a legal professional to fully understand the scope of their indemnification obligations and to assess their risk management strategies.