If a Bonchon franchise agreement includes questionnaires or acknowledgments contrary to the Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments, adopted by the North American Securities Administrators Association, do those questionnaires and acknowledgments apply to prospective franchisees who are Maryland residents or who seek to purchase a franchise located in Maryland?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If the franchise agreement or any agreement executed by the franchisee in connection therewith (including but not limited to, if applicable, an area development agreement), includes any questionnaire to be completed by or acknowledgments to be made by the franchisee that are contrary to the Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments, adopted on September 18, 2022 by the North American Securities Administrators Association, Inc. (with an effective date of January 1, 2023), then any such questionnaire and/or acknowledgments shall not apply to prospective franchisees who are Maryland residents or who seek to purchase a franchise located in Maryland.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, any questionnaires or acknowledgments included in the franchise agreement (or related agreements) that contradict the Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments, adopted by the North American Securities Administrators Association on September 18, 2022, and effective January 1, 2023, will not apply to prospective franchisees who are Maryland residents or who are seeking to purchase a franchise located in Maryland. This addendum ensures that Maryland franchisees are not bound by questionnaire or acknowledgment terms that might otherwise compromise their rights under franchise law. This protection is specifically designed to align with the state's franchise regulations.
This provision is crucial for prospective Bonchon franchisees in Maryland as it prevents the enforcement of potentially conflicting terms found in standard franchise agreements. The Statement of Policy aims to protect franchisees from unknowingly waiving their rights or making acknowledgments that could be detrimental to their interests. By excluding Maryland franchisees from these specific questionnaires and acknowledgments, Bonchon ensures compliance with Maryland's franchise laws and provides a more equitable franchise agreement.
This addendum serves as an additional layer of protection for franchisees in Maryland, ensuring that the franchise agreement adheres to the state's specific regulations. It is important for prospective franchisees to carefully review the franchise agreement and any addenda to fully understand their rights and obligations. Franchisees should also seek legal counsel to ensure they are fully aware of the implications of all agreement terms, especially those related to waivers, releases, and acknowledgments.