If a Bonchon franchisee in Maryland completes a questionnaire or acknowledgment that contradicts the North American Securities Administrators Association's Statement of Policy, does that questionnaire or acknowledgment apply to them?
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 questionnaire or acknowledgments completed by a franchisee that contradict the North American Securities Administrators Association's (NASAA) Statement of Policy will not apply to prospective franchisees who are Maryland residents or seek to purchase a franchise in Maryland. This policy specifically refers to the Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments, adopted on September 18, 2022, by NASAA, with an effective date of January 1, 2023.
This provision protects potential Bonchon franchisees in Maryland from unknowingly waiving their rights or making acknowledgments that are not in their best interest, as defined by NASAA's guidelines. It ensures that franchisees in Maryland are not bound by questionnaire responses or acknowledgments that conflict with the established policy.
This protection is particularly important because franchise agreements can be complex, and franchisees may not always fully understand the implications of every clause or document they sign. By explicitly stating that conflicting questionnaires and acknowledgments do not apply to Maryland franchisees, Bonchon aims to provide a level of assurance and compliance with state-specific regulations. This addendum helps to ensure that franchisees are treated fairly and are not subject to potentially misleading or unfair provisions.