factual

For Bonchon franchises, what specific sections of the Franchise Agreement are amended to include language clarifying that releases do not waive liability under the Maryland Franchise Registration and Disclosure Law?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

gnature page follows.]

| 5. California Business | and Professions | Code | 20000 | through | 20043 | provide rights | to the | |---|---|---|---|---|---|---|---| [Signature Page – Indiana Addendum to Franchise Agreement]

MARYLAND ADDENDUM TO FRANCHISE AGREEMENT

The following provisions will supersede anything to the contrary in the Franchise Disclosure Document or Franchise Agreement and will apply to all franchises offered and sold under the laws of the State of Maryland:

    1. Sections 6.01 ("Restaurant Location"), 7.02 ("Initial Training Program/Partner Training Program"), 13.01(I) ("Conditions to Successor Term") and 14.04(O) ("Assignment By You – Sale to Third Party") of the Franchise Agreement, each of which require the execution of a General Release, are each amended to add the following language:
    • "The release requirement of this Section is not intended to nor will it act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. The release required under this Section will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law."
    1. The laws of the State of Maryland may supersede the Franchise Agreement, including the areas of termination and renewal of the Franchise.
    1. Any claims arising under the Maryland Franchise Registration and Disclosure Laws must be brought within three years after the grant of the Franchise.
    1. Section 32.04 of the Franchise Agreement ("Venue") requires venue to be limited to New York. This provision is deleted from all Franchise Agreements for residents of the State of Maryland and/or franchises to be operated in the State of Maryland.

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

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, several sections of the Franchise Agreement are amended by the Maryland Addendum to ensure compliance with the Maryland Franchise Registration and Disclosure Law. These amendments clarify that certain releases and waivers within the agreement do not waive liability under Maryland law.

Specifically, Sections 6.01 ("Restaurant Location"), 7.02 ("Initial Training Program/Partner Training Program"), 13.01(I) ("Conditions to Successor Term") and 14.04(O) ("Assignment By You – Sale to Third Party") of the Franchise Agreement, which require the execution of a General Release, are amended to include language stating that the release requirement is not intended to, nor will it, act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law, and that the release required will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law.

Additionally, the last paragraph of Section 3.04 of the Franchise Agreement ("Rights We Reserve") is amended to include sentences clarifying that waivers and releases in that paragraph are not intended to, nor will they act as a release, estoppel, or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law, and that these waivers and releases will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law. Section 26.01 and 27.01 are also amended to include similar language.

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.