Does the Indiana Addendum to the Bonchon Area Development Agreement require an Area Developer to indemnify the Franchisor for liability caused by the Area Developer's proper reliance on procedures provided by Bonchon?

According to Bonchon's 2025 Franchise Disclosure Document, the Indiana Addendum to the Area Development Agreement specifies that an Area Developer is not required to indemnify Bonchon for liability under certain conditions. Specifically, this protection applies if the liability is caused by the Area Developer's proper reliance on or use of procedures or materials provided by Bonchon. It also extends to liability caused by Bonchon's own negligence. This addendum modifies the standard indemnification clause found in Section 9.03 of the Area Development Agreement.

This modification is favorable for prospective Bonchon Area Developers in Indiana. It means they are shielded from financial responsibility for liabilities arising from their adherence to Bonchon's prescribed methods or from Bonchon's own errors. This could cover situations where the Area Developer follows Bonchon's operational guidelines, but those guidelines lead to a customer injury or other legal claim.

Without this addendum, the standard indemnification clause might obligate the Area Developer to cover Bonchon's legal costs and damages in such cases. The Indiana Addendum provides a degree of protection, ensuring that Area Developers are not penalized for following Bonchon's system or for Bonchon's own oversights. This could make the Bonchon franchise opportunity in Indiana more attractive by reducing potential financial risks for the Area Developer.