If a Bonchon franchise agreement includes questionnaires or acknowledgments contrary to the North American Securities Administrators Association's Statement of Policy, do those questionnaires/acknowledgments apply to Maryland residents or franchises located in Maryland?

According to Bonchon's 2025 Franchise Disclosure Document, any questionnaires or acknowledgments included in the franchise agreement (or related agreements like an area development agreement) that contradict the North American Securities Administrators Association's (NASAA) Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments will not apply to prospective franchisees who are Maryland residents or who are seeking to purchase a franchise located in Maryland. The Statement of Policy was adopted on September 18, 2022, with an effective date of January 1, 2023. This protection is specifically outlined in the Maryland Addendum to the Franchise Agreement.

This means that Bonchon franchisees in Maryland are not bound by questionnaire or acknowledgment terms that might otherwise limit their rights or remedies under franchise law, particularly those related to reliance on franchisor statements or waivers of legal claims. This addendum ensures that Maryland franchisees retain the full protection of Maryland's franchise laws, regardless of conflicting terms in the standard franchise agreement.

For a prospective Bonchon franchisee in Maryland, this is a beneficial provision. It prevents the franchisee from inadvertently waiving rights or making acknowledgments that could be detrimental in the event of a dispute with Bonchon. It's important for potential franchisees to carefully review the Maryland Addendum and understand how it modifies the standard franchise agreement to provide additional protections under Maryland law. This also highlights the importance of consulting with a legal professional experienced in franchise law to fully understand their rights and obligations before signing any franchise agreement.