For Bonchon franchises in Indiana, does the Indiana Addendum to the Franchise Agreement limit venue for litigation to New York?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
INDIANA ADDENDUM TO FRANCHISE AGREEMENT
Notwithstanding anything to the contrary set forth in the Franchise Agreement, the following provisions will supersede and apply:
The laws of the State of Indiana supersede any provisions of the Franchise Agreement or New York law if such provisions are in conflict with Indiana law.
The Franchise Agreement will be governed by Indiana law, rather than New York law, as stated in Section 32.03 of the Franchise Agreement.
Venue for litigation will not be limited to New York, as specified in Section 32.04 of the Franchise Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Indiana Addendum to the Franchise Agreement specifically addresses venue for litigation. For Bonchon franchises in Indiana, the addendum states that venue for litigation will not be limited to New York, which modifies the standard Franchise Agreement. This means that franchisees in Indiana are not obligated to litigate disputes exclusively in New York courts.
This provision is significant for prospective Bonchon franchisees in Indiana because it allows for the possibility of litigating closer to their business location, potentially reducing travel costs and making it easier to manage legal proceedings. It also means that Indiana law could govern the litigation, which may be more familiar and advantageous to the franchisee.
It is important for potential franchisees to carefully review the Indiana Addendum in conjunction with the Franchise Agreement to fully understand their rights and obligations, particularly regarding dispute resolution. This ensures that franchisees are aware of the legal framework that will govern their relationship with Bonchon.