In Indiana, is a Bonchon franchisee required to indemnify the Franchisor for liability caused by the franchisee's proper reliance on procedures or materials provided by the Franchisor, or caused by the Franchisor's negligence?

According to Bonchon's 2025 Franchise Disclosure Document, a franchisee in Indiana is not required to indemnify Bonchon for liability under specific circumstances. Specifically, the Indiana Addendum to the Franchise Agreement states that franchisees are not required to indemnify Bonchon or other indemnitees for liability if it arises from the franchisee's proper reliance on or use of procedures or materials provided by Bonchon. This protection also extends to liability caused by Bonchon's own negligence. This modification is in place to protect franchisees in Indiana.

This provision is a deviation from the standard indemnification clause found in most franchise agreements, where franchisees typically agree to protect the franchisor from various liabilities. The Indiana addendum provides a more balanced approach, acknowledging that Bonchon should bear responsibility for its own actions and the materials it provides to franchisees. This could reduce the financial risk for franchisees operating in Indiana.

This modification is outlined in Item 23 of the FDD, which addresses receipts and includes addenda that modify the franchise agreement to comply with state-specific laws. Prospective Bonchon franchisees in Indiana should carefully review the Indiana Addendum to fully understand their rights and obligations, particularly regarding indemnification and other legal matters that are governed by Indiana law.