exception

For Bonchon franchisees in Maryland, can any statement or acknowledgement signed in connection with the franchise relationship waive claims under applicable state franchise law or disclaim reliance on statements made by the franchisor?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor.

This provision supersedes any other term of any document executed in connection with the franchise.

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, any statement, questionnaire, or acknowledgment signed by a franchisee in connection with starting the franchise relationship cannot waive claims under any applicable state franchise law. This includes claims of fraud in the inducement. Furthermore, these documents cannot disclaim reliance on any statement made by Bonchon, its franchise sellers, or anyone acting on Bonchon's behalf. This provision overrides any other conflicting terms in any document related to the franchise.

This protection is specifically reinforced by the Maryland Addendum to the Disclosure Document. The addendum states that its provisions supersede anything to the contrary in the Franchise Disclosure Document or Franchise Agreement and apply to all franchises offered and sold under Maryland law. This ensures that franchisees in Maryland retain their rights under state franchise law, regardless of any standard waivers or releases included in the franchise agreement.

For a prospective Bonchon franchisee in Maryland, this means that they cannot inadvertently waive their rights or be prevented from relying on statements made by Bonchon during the franchise sales process. This provides an added layer of security and legal protection under Maryland's franchise laws, ensuring that franchisees can pursue claims if they believe they have been misled or defrauded. This protection is particularly important in the context of franchise agreements, which often contain extensive waivers and releases.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.