Does the Bonchon indemnification clause extend to claims arising from personal injury suffered by a guest at the Bonchon Restaurant?
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 claims arising from personal injury suffered by a guest at a Bonchon Restaurant. Bonchon franchisees are required to defend, indemnify, and hold harmless Bonchon and its affiliates from all claims, losses, liabilities, and costs related to the operation of the franchised business. This includes any personal, bodily, or mental injury suffered by any customer, visitor, manager, operator, supplier, employee, or guest of the franchised restaurant.
This means that if a guest is injured at a Bonchon restaurant, the franchisee is responsible for covering the costs of defending Bonchon against any claims and for any resulting liabilities. This obligation extends to any claims, lawsuits, or investigations arising from the operation of the Bonchon restaurant. The franchisee's responsibility includes covering costs associated with judicial, administrative, or arbitration proceedings, as well as settlements.
This indemnification clause is broad and places significant financial responsibility on the franchisee. It is important for prospective franchisees to understand the scope of this clause and to ensure they have adequate insurance coverage to protect themselves against potential claims. Franchisees should consult with legal and insurance professionals to fully understand their obligations and to obtain appropriate insurance coverage, including general liability and umbrella liability coverage. Bonchon also requires specific insurance coverage to satisfy the franchisee's indemnification obligations under the agreement.
Bonchon also outlines the need for insurance coverage of such types, nature, and scope sufficient to satisfy the franchisee's indemnification obligations under the agreement, including coverage to indemnify Bonchon from any claims alleging violation of federal, state, or local labor and/or wage and hour laws, rules, or regulations. Additionally, Bonchon requires umbrella liability coverage of no less than $2,000,000 and employment practices liability insurance with a limit of not less than $250,000. These insurance requirements highlight the importance of franchisees protecting themselves from potential liabilities arising from the operation of their Bonchon restaurant.