What is a Bonchon franchisee required to do if they experience a breach or suspected breach of security that may result in unauthorized access to Personal Information?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
sactions and automated "smart phone" (or other) customer purchase tracking / payment transactions.
You must at all times undertake all reasonable measures to anticipate, detect and prevent fraudulent credit or debit transactions.
8.16 Compliance With Security Protocols
You agree to assure all communication connections (of whatever form, wireless, cable, internet, broadband or other) and access to financial information, especially credit card information, is at all times kept secure in a manner which is in compliance with all legal requirements and, particularly, with all security requirements of the issuing credit card companies. You further agree to hold us and the other Indemnitees (as defined in Section 8.11) harmless from any and all claims and liabilities related to your failure to do so. In addition, at your cost, you agree to provide us with a written report of verification from a specialist approved by us confirming compliance with the obligations imposed by this Section 8.16 and any other proof of such compliance that we may reasonably require.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, franchisees must ensure their communication connections and access to financial information, especially credit card data, are secure and compliant with legal and credit card company security requirements. Franchisees are responsible for any claims or liabilities resulting from their failure to maintain this security.
Bonchon franchisees must provide a written verification report from a specialist approved by Bonchon, confirming compliance with security obligations. This report, along with any other proof of compliance reasonably requested by Bonchon, is at the franchisee's expense. This requirement ensures that franchisees take proactive measures to protect sensitive financial data and adhere to established security protocols.
Additionally, Bonchon franchisees operating under a License Agreement are obligated to immediately inform Bonchon if they discover or have reason to believe that anyone with access to the Bonchon Software has violated or intends to violate the terms of the agreement. This includes unauthorized use, copying, or disclosure of the software. This immediate notification requirement is crucial for Bonchon to take swift action to mitigate any potential damage or unauthorized activity.
While the FDD outlines the franchisee's responsibility to maintain security and report potential breaches related to the Bonchon software, it does not explicitly detail the specific steps a franchisee must take in the event of a confirmed data breach involving personal information beyond the software. A prospective franchisee should seek clarification from Bonchon regarding the specific incident response plan and notification procedures required in such a scenario.