In Indiana, can any release language in the Bonchon Area Development Agreement relieve the franchisor from liability imposed by state franchising laws?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
No release language set forth in the Area Development Agreement will relieve the Franchisor or any other person, directly or indirectly, from liability imposed by the laws concerning franchising of the State of Indiana.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, release language within the Area Development Agreement cannot relieve Bonchon from liability imposed by Indiana franchising laws. This protection is specifically outlined in the Indiana Addendum to the Area Development Agreement. This means that any clause attempting to waive Bonchon's responsibility under Indiana's franchise regulations is unenforceable.
This provision ensures that Area Developers in Indiana retain their rights and protections under Indiana state law, regardless of what the standard Area Development Agreement might state. It creates a legal safeguard for Area Developers, preventing Bonchon from using contractual language to circumvent Indiana's franchise laws.
Prospective Bonchon Area Developers in Indiana should be aware of this addendum, as it strengthens their legal standing and ensures that Bonchon remains accountable to Indiana's franchising regulations. This protection is particularly important when negotiating the terms of the Area Development Agreement and understanding the full scope of their rights and obligations.