Is Bonchon indemnified for claims arising from the franchisee's offer or sale of securities in their business?

According to Bonchon's 2025 Franchise Disclosure Document, franchisees must indemnify Bonchon from claims related to the franchisee's offer and/or sale of products and/or services. This means that if a franchisee faces claims arising from their business operations, including the sale of products or services, the franchisee is responsible for defending and protecting Bonchon from any associated liabilities, losses, or costs. This obligation extends to any action by a customer or visitor to the Bonchon restaurant.

This indemnification clause places a significant financial responsibility on the franchisee. If a customer sues Bonchon due to an incident at the franchisee's restaurant, the franchisee is responsible for covering Bonchon's legal defense and any resulting damages. This could include a wide range of claims, such as product liability, service issues, or injuries sustained on the premises.

For a prospective Bonchon franchisee, this highlights the importance of maintaining adequate insurance coverage and adhering to all operational standards and legal requirements. Franchisees should also seek legal counsel to fully understand the scope of their indemnification obligations and to ensure they have appropriate risk management strategies in place. This level of indemnification is relatively standard in franchising, as franchisors seek to protect their brand and reputation from liabilities arising from the actions of individual franchisees.