When would the General Release – Successor Term be used in relation to a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
- I.
You (and if you are a business entity, your owners) must have signed our then-current form of General Release.
This General Release will not release us, from any future claims related to any Successor Franchise Agreement but will release us, our affiliates, and our respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants and employees, past and present, in their corporate and individual capacities from any and all claims you may have related to this Agreement or under federal, state or local laws, rules, regulations or orders; and,
If you have satisfied these conditions, then we will provide you with a Successor Franchise Agreement in the manner specified in the following section.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the General Release is used when a franchisee seeks a Successor Term to their existing Franchise Agreement. To obtain a Successor Franchise Agreement, the franchisee must sign Bonchon's then-current form of General Release. This release is a condition that must be satisfied before Bonchon will provide a Successor Franchise Agreement.
The General Release applies to claims unrelated to the Successor Franchise Agreement itself. Specifically, by signing the General Release, the franchisee releases Bonchon, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees from any claims related to the original Franchise Agreement or under federal, state, or local laws, rules, regulations, or orders. However, the General Release does not protect Bonchon from future claims related to the Successor Franchise Agreement.
In practical terms, this means that if a Bonchon franchisee wants to continue operating their franchise beyond the initial term, they must waive their rights to sue Bonchon for any past issues, except for those that might arise under the new Successor Franchise Agreement. This is a fairly standard practice in franchising, as it allows the franchisor to start the new term with a clean slate, free from potential legal disputes stemming from the previous agreement.