For Bonchon franchises in Indiana, is the franchisee required to indemnify the franchisor for liability caused by the franchisee's proper reliance on procedures or materials provided by the franchisor?

According to Bonchon's 2025 Franchise Disclosure Document, franchisees in Indiana are not required to indemnify Bonchon for liability resulting from the franchisee's proper reliance on procedures or materials provided by Bonchon, or caused by Bonchon's negligence. This protection is specifically outlined in an addendum to the Franchise Agreement for franchises offered and sold in Indiana. This addendum modifies the standard indemnification terms found in Section 8.11 of the Franchise Agreement.

This modification is favorable for prospective Bonchon franchisees in Indiana. Indemnification clauses typically require franchisees to protect the franchisor from losses, damages, or liabilities arising from the franchisee's business operations. However, this Indiana-specific clause shifts the responsibility away from the franchisee in situations where the franchisee followed Bonchon's provided procedures or materials, or if Bonchon's own negligence contributed to the liability.

This addendum offers significant protection to Bonchon franchisees in Indiana, ensuring they are not held liable for issues stemming from Bonchon's systems or negligence. Franchisees should carefully review this addendum and understand its implications, as it provides a notable exception to the standard indemnification obligations typically found in franchise agreements.