In Indiana, can the release language in the Bonchon Franchise Agreement or Area Development Agreement relieve the Franchisor from liability imposed by Indiana franchise laws?

According to Bonchon's 2025 Franchise Disclosure Document, the release language in the Franchise Agreement or the Area Development Agreement cannot relieve Bonchon or any other person from liability imposed by Indiana laws concerning franchising. This protection is specifically outlined in the Indiana Addendum to both the Franchise Agreement and the Area Development Agreement. This means that any clause attempting to waive Bonchon's responsibilities under Indiana franchise law will be unenforceable in that state.

This provision is favorable for prospective Bonchon franchisees in Indiana, as it ensures that they retain all rights and protections granted to them under Indiana franchise law. It prevents Bonchon from using contractual language to circumvent these legal obligations. The Indiana Addendum explicitly states that its provisions supersede any conflicting terms in the standard Franchise Agreement or Area Development Agreement, reinforcing the primacy of Indiana law in franchise relationships within the state.

Furthermore, the Indiana Addendum modifies several other sections of the Franchise Agreement and Area Development Agreement to comply with Indiana law. These modifications include governing law, venue for litigation, termination clauses, covenants not to compete, and limitations on remedies. By addressing these specific areas, Bonchon aims to ensure that its franchise agreements are fully compliant with Indiana's franchise regulations, providing additional clarity and protection for franchisees operating in Indiana.