In Indiana, do the 'Our Withholding of Consent – Your Exclusive Remedy' clauses in the Bonchon Franchise Agreement and Area Development Agreement apply to franchises or area franchises offered and sold?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Article 24 of the Franchise Agreement ("Our Withholding of Consent Your Exclusive Remedy ") and Section 18.04 of the Area Development Agreement ("Our Withholding of Consent – Your Exclusive Remedy ") shall not apply to franchises or area franchises offered and sold in 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, the 'Our Withholding of Consent – Your Exclusive Remedy' clauses in both the Franchise Agreement and the Area Development Agreement do not apply to franchises or area franchises offered and sold in Indiana. Specifically, Article 24 of the Franchise Agreement, titled "Our Withholding of Consent Your Exclusive Remedy," and Section 18.04 of the Area Development Agreement, titled "Our Withholding of Consent – Your Exclusive Remedy," are explicitly stated as not applicable. This is detailed in the Indiana Addendum to both the Franchise Agreement and the Area Development Agreement.
This means that for Bonchon franchises operating in Indiana, the standard provisions that might limit a franchisee's recourse when Bonchon withholds consent on certain matters are removed. Typically, these clauses might restrict the franchisee's remedy to only seeking an order compelling Bonchon to grant consent, preventing them from claiming damages or other forms of compensation. However, in Indiana, this limitation does not apply, potentially giving franchisees broader legal options if Bonchon unreasonably withholds consent.
This modification is significant for prospective Bonchon franchisees in Indiana, as it provides additional protection under Indiana state law. Franchisees should consult with a legal professional to fully understand the implications of this addendum and how it affects their rights and obligations under the Franchise Agreement and Area Development Agreement. This ensures they are aware of the legal landscape specific to franchising in Indiana and can make informed decisions.