What is the Bonchon franchisee required to do if it is asserted that the Franchisor is the employer of the franchisee's employees?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Finally, should it ever be asserted that Franchisor is the employer, joint employer or co-employer of Franchisee or any of Franchisee's employees in any private or government investigation, action, proceeding, arbitration or other setting, Franchisee irrevocably agrees to assist Franchisor in defending said allegation, including (if necessary) appearing at any venue requested by Franchisor to testify on Franchisor's behalf (and, as may be necessary, submitting itself to depositions, other appearances and/or preparing affidavits dismissive of any allegation that Franchisor is the employer, joint employer or co-employer of any of Franchisee's employees). To the extent Franchisor is the only named party in any such investigation, action, proceeding, arbitration or other setting to the exclusion of Franchisee, then should any such appearance by Franchisee be required or requested by Franchisor will recompense Franchisee the reasonable costs associated with Franchisee appearing at any such venue (including travel, lodging, meals and per diem salary). Pursuant to Section 8.11 above, Franchisee will indemnify and hold harmless us and the other Indemnitees to the fullest extent permitted by law against all claims, losses, liabilities and costs (as defined in Section 8.11) from any claim, however and wherever asserted, that we or our affiliates are the employer, joint employer or co-employer of you and/or your employees (including, without limitation, any claims against us for your violation of federal, state or local labor and/or wage and hour laws, rules and regulations). Accordingly, in accordance with Section 9.018) you shall obtain and maintain insurance coverage of such type, nature and scope sufficient to satisfy this indemnification obligation.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if it is asserted that Bonchon is the employer, joint employer, or co-employer of the franchisee or any of the franchisee's employees in any private or government investigation, action, proceeding, arbitration, or other setting, the franchisee must assist Bonchon in defending the allegation. This assistance includes appearing at any venue requested by Bonchon to testify on Bonchon's behalf and submitting to depositions, other appearances, or preparing affidavits to deny that Bonchon is the employer, joint employer, or co-employer of the franchisee's employees.
If Bonchon is the only named party in any such investigation, action, proceeding, arbitration, or other setting, Bonchon will recompense the franchisee for the reasonable costs associated with the franchisee appearing at any such venue. These costs include travel, lodging, meals, and per diem salary.
The Bonchon franchisee also agrees to indemnify and hold harmless Bonchon and other indemnitees against all claims, losses, liabilities, and costs from any claim that Bonchon or its affiliates are the employer, joint employer, or co-employer of the franchisee and/or the franchisee's employees, including claims against Bonchon for the franchisee's violation of federal, state, or local labor and/or wage and hour laws, rules, and regulations. The franchisee must obtain and maintain insurance coverage sufficient to satisfy this indemnification obligation.