Where must litigation be conducted according to the Bonchon Area Development Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Area Development Agreement | Summary |
|---|---|---|
| v. Choice of forum | Sections 18.13 and 13.03 | Litigation must be in New York, New York, except that we may bring an action for an injunction in any court with jurisdiction (see Area Development Agreement). (Subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, litigation pertaining to the Area Development Agreement must generally be conducted in New York, New York. Specifically, Section 18.13 and 13.03 of the Area Development Agreement dictate that New York, New York, serves as the primary forum for litigation.
However, there is an exception to this rule. Bonchon retains the right to initiate actions for injunctive relief in any court that possesses the appropriate jurisdiction. This means that if Bonchon seeks an injunction (a court order requiring someone to do or cease doing a specific action), they are not limited to New York courts and can pursue such legal action in any court that has jurisdiction over the matter.
It's important to note that these provisions are subject to state law, meaning that the enforceability of the forum selection clause may vary depending on the franchisee's state. Prospective franchisees should consult with legal counsel to understand the implications of these clauses in their specific jurisdiction.