In North Dakota, can Bonchon franchisees be required to consent to termination or liquidated damages as potentially outlined in Section 18.01 of the Franchise Agreement?

According to Bonchon's 2025 Franchise Disclosure Document, franchisees in North Dakota will not be required to consent to termination or liquidated damages as described in Section 18.01 of the Franchise Agreement. The North Dakota Addendum to the Franchise Agreement specifically states that this requirement is deleted from all Franchise Agreements used in the State of North Dakota. This addendum modifies the standard franchise agreement to comply with North Dakota law.

This modification is favorable for prospective Bonchon franchisees in North Dakota. It means that franchisees will not be forced to agree to terms that could require them to consent to termination or pay liquidated damages, potentially offering them greater protection in the event of disputes or termination of the franchise agreement. This change reflects North Dakota's specific legal requirements regarding franchise agreements.

It is important for potential franchisees to carefully review the North Dakota Addendum in conjunction with the Franchise Agreement to fully understand their rights and obligations. Franchisees should also seek legal counsel to ensure they understand the implications of these modifications under North Dakota law. This ensures that franchisees are fully aware of the specific terms and conditions that apply to their franchise agreement within the state.