What is the Bonchon franchisee's responsibility to monitor changes in High-Risk Persons during the term of the agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must not use or otherwise export, re-export or transfer the Stripe Technology except as authorized by United States law and the laws of the jurisdiction(s) in which the Stripe Technology was distributed and obtained, including by providing access to Stripe Technology (a) to any individual or entity ordinarily resident in a High-Risk Jurisdiction; or (b) to any High-Risk Person. By using the Stripe Technology, you represent as of the Effective Date and warrant during the Term that you are not (x) located in or organized under the laws of any High-Risk Jurisdiction; (y) a High-Risk Person; or (z) owned 50% or more, or controlled, by individuals and entities (i) located in or, as applicable, organized under the laws of any High-Risk Jurisdiction; or (ii) any of whom or which is a High-Risk Person. You must not use the Stripe Technology for any purposes prohibited by Law, including the development, design, manufacture or production of missiles, nuclear, chemical or biological weapons.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees must adhere to export control regulations concerning Stripe Technology. Throughout the franchise term, a Bonchon franchisee warrants they are not located in or organized under the laws of any High-Risk Jurisdiction, are not a High-Risk Person, and are not owned 50% or more or controlled by individuals or entities located in High-Risk Jurisdictions or who are High-Risk Persons.
This means a Bonchon franchisee must continuously ensure they and their business operations comply with these restrictions. This includes monitoring for any changes in their own status or the status of their owners that could classify them as a High-Risk Person or connected to a High-Risk Jurisdiction.
Failure to comply with these export control regulations could result in a breach of the franchise agreement. Bonchon franchisees should maintain thorough records and implement due diligence procedures to ensure ongoing compliance with these requirements.