What laws and regulations must each party comply with regarding the agreement for Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You further agree to develop and operate the Bonchon Businesses in strict compliance with all applicable laws, rules and regulations of all governmental authorities; to comply with all applicable wage, hour and other laws and regulations of the federal, state and local governments; to prepare and file all necessary tax returns; to pay all taxes imposed upon you related to the Bonchon Businesses; and, to obtain and keep in good standing all necessary licenses, permits and other required forms of governmental approval required of you.
The sample layout and preliminary plans we furnish you will not address the requirements of any federal, state or local law, code or regulation, including those of the Americans with Disabilities Act (the "ADA") or similar laws or rules. You alone, working with the AOR, are responsible for ensuring that your Bonchon Restaurant, as constructed, complies with all applicable laws, rules, regulations, ordinances, building codes, fire codes, permit requirements and the ADA. Further, the sample layout and preliminary plans we furnish you will not contain the requirements of, and may not be used for, construction drawings or other documentation necessary to obtain permits or authorizations to build and/or operate a specific Bonchon Restaurant. You agree, at your expense, to employ our AOR to complete, adapt, modify or substitute the layout, plans and specifications for your Bonchon Restaurant.
Your architect (or if required, an independent architect) must certify to you in writing that the plans and specifications for your Restaurant comply with the ADA; the architectural guidelines under the ADA; all applicable federal, state and/or local laws, rules and regulations for accessible facilities; and, all other applicable federal, state or local laws, rules and regulations (including building codes, fire codes and permit requirements). You must furnish us with a copy of this certification if we ever request it.
If any valid, applicable law or regulation of a competent governmental authority with jurisdiction over this Agreement or the parties to this Agreement limits our rights of termination under this Agreement or requires longer notice or cure periods than those set forth above, then this Agreement will be considered modified to conform to the minimum notice, cure periods or restrictions upon termination required by the laws and regulations.
You do not comply, for a period of 15 days after notification of non-compliance by us or any governmental or quasi-governmental authority, with any federal, state or local law or regulation applicable to the operation of the franchised Business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, both the franchisee and Bonchon must comply with various laws and regulations. The franchisee must operate their Bonchon business in strict compliance with all applicable federal, state, and local laws, rules, and regulations. This includes adhering to wage and hour laws, preparing and filing necessary tax returns, paying all related taxes, and obtaining and maintaining all required licenses, permits, and governmental approvals.
Bonchon provides sample layouts and preliminary plans, but it is the franchisee's responsibility to ensure the restaurant complies with all applicable laws, rules, regulations, ordinances, building codes, fire codes, permit requirements, and the Americans with Disabilities Act (ADA). The franchisee must also obtain written certification from their architect that the plans comply with the ADA and all other applicable laws and regulations. Bonchon's approval of the franchisee's plans does not constitute an assessment of compliance with these laws.
Failure to comply with these laws and regulations can lead to termination of the franchise agreement. Specifically, if a franchisee does not comply with federal, state, or local laws or regulations applicable to the operation of the franchised business for a period of 15 days after notification of non-compliance by Bonchon or any governmental authority, it can be grounds for termination. Additionally, Bonchon retains the right to modify the agreement to conform to any valid, applicable law or regulation that limits their rights of termination or requires longer notice or cure periods.