Does the Maryland Addendum to the Disclosure Document apply to all Bonchon franchises offered and sold under Maryland law?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
MARYLAND ADDENDUM TO DISCLOSURE DOCUMENT
The following provisions will supersede anything to the contrary in the Franchise Disclosure Document or Franchise Agreement and will apply to all franchises offered and sold under the laws of the State of Maryland:
ITEM 12 TERRITORY
The following sentence is added at the end of the paragraph in Item 12 concerning our reservation of territorial rights which begins "Under the terms of the Franchise Agreement, you waive and release any claims, demands or damages arising from or related to any of the activities described above":
"These waivers and releases are not intended to nor will they act as a release, estoppel or waiver of any liability incurred under the Maryland Franchise Registration and Disclosure Law. These waivers and releases will not apply to claims arising under the Maryland Franchise Registration and Disclosure Law."
ITEM 17. RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION
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- The general release required as a condition of renewal, sale, and/or assignment/transfer shall not apply to any liability under the Maryland Franchise Registration and Disclosure Law.
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- The laws of the State of Maryland may supersede the Franchise Agreement, including the areas of termination and renewal of the Franchise.
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- A franchisee may sue in Maryland for claims arising under the Maryland Franchise Registration and Disclosure Law. Any claims arising under the Maryland Franchise Registration and Disclosure Laws must be brought within three years after the grant of the Franchise.
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- The provision of the Franchise Agreement that provides for termination upon your bankruptcy may not be enforceable under federal bankruptcy law (11 U.S.C. Section 101 et seq.).
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Maryland Addendum to the Disclosure Document applies to all Bonchon franchises offered and sold under the laws of the State of Maryland. This addendum includes provisions that supersede anything to the contrary in the Franchise Disclosure Document or Franchise Agreement.
Specifically, the Maryland Addendum addresses several key aspects of the franchise agreement. It amends sections related to restaurant location, initial training, conditions to successor term, and assignment by the franchisee to a third party, clarifying that the release requirements in those sections do not waive liabilities under the Maryland Franchise Registration and Disclosure Law. The addendum also states that Maryland law may supersede the Franchise Agreement, particularly in areas of termination and renewal.
Furthermore, any claims arising under Maryland Franchise Registration and Disclosure Laws must be brought within three years after the franchise is granted. The addendum also removes the requirement for venue to be limited to New York for Maryland residents or franchises operated in Maryland, allowing franchisees to sue in Maryland for claims arising under Maryland Franchise Law. These modifications provide additional protection and legal recourse for Bonchon franchisees operating in Maryland.