Does the Bonchon indemnification clause cover damage to property suffered by Bonchon's affiliates?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree that you will, at your sole cost, at all times defend us, any affiliate of ours, the affiliates, subsidiaries, successors, assigns and designees of each; and, the officers, directors, managers, employees, agents, attorneys, shareholders, owners, members, designees and representatives of all of the foregoing (we and all others referenced above being the "Indemnitees"), and indemnify, reimburse and hold harmless us and the Indemnitees to the fullest extent permitted by law, from all claims, losses, liabilities and costs incurred in connection with any judicial, administrative or arbitration action or proceeding (including bankruptcy, insolvency, debtor/creditor or similar proceedings), suit, claim, demand, investigation, or formal or informal inquiry (regardless of whether any of the foregoing is reduced to judgment) or any settlement of the foregoing, which actually or allegedly, directly or indirectly, arises out of, is based upon, is a result of or is related in any way to any element of your entry into this Agreement; your establishment, construction, opening and operation of your Bonchon Restaurant and franchised Business, including any other business operating within or in relation to the Restaurant (which other business, if any, shall be subsumed within this paragraph's references to the Restaurant) and further including (without limitation) any personal, bodily or mental injury, death, property damage or loss, suffered by any customer, visitor, manager, operator, supplier, employee or guest of the franchised Restaurant or Business; crimes committed on or near any of the premises or facilities of your franchised Business or vehicles used by your franchised Business; all acts, errors, neglects or omissions engaged in by you, your contractors or subcontractors, as well as any third party, arising out of or related to the design, construction, conversion, build-out, outfitting, remodeling, renovation or upgrading of your Bonchon Restaurant, whether or not any of the foregoing was approved by us; defects in any Bonchon Restaurant you construct and/or operate, whether or not discoverable by you or by us; all acts, errors, neglects or omissions of you or the franchised Business and/or the owners, officers, directors,
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the indemnification clause does extend to property damage suffered by Bonchon's affiliates. As a Bonchon franchisee, you are required to defend and hold harmless Bonchon and its affiliates from all claims, losses, liabilities, and costs. This includes any property damage or loss suffered by any customer, visitor, manager, operator, supplier, employee, or guest of the franchised restaurant or business.
This indemnification obligation arises from various situations related to your Bonchon restaurant. These situations include your entry into the franchise agreement, the establishment and operation of your Bonchon restaurant, and any other business operating within or related to the restaurant. It also covers incidents such as personal injury, death, or property damage suffered by anyone at your restaurant, as well as crimes committed on or near your premises.
The franchisee's responsibility extends to acts, errors, or omissions by the franchisee, their contractors, or any third party involved in the design, construction, or renovation of the Bonchon restaurant. It also includes defects in the restaurant, regardless of whether they were discoverable. This broad indemnification means that franchisees bear significant financial responsibility for a wide range of potential issues, even those not directly caused by their own actions.
Bonchon franchisees should be aware of the extensive scope of this indemnification clause and understand that they are responsible for covering legal costs and damages arising from various incidents related to their restaurant's operation. Franchisees should ensure they have adequate insurance coverage and risk management practices in place to mitigate potential liabilities.