factual

Does Bonchon have an obligation to act, manage, or remediate any Crisis Management Event?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

Our rights under this Section 8.28 shall be exercised in our sole business judgment and nothing in this Section 8.28 shall be deemed to require us to act, manage or remediate any Crisis Management Event.

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon is not required to act, manage, or remediate any Crisis Management Event. Bonchon retains the right to exercise its business judgment in these situations, but is not obligated to intervene.

However, if a non-System wide Crisis Management Event occurs at a franchisee's Bonchon Restaurant, the franchisee must immediately inform Bonchon by telephone or email. Bonchon may elect to direct the management of the Crisis Management Event, and may engage professionals such as attorneys, experts, doctors, testing laboratories, and public relations firms.

If Bonchon manages the Crisis Management Event, the franchisee may be required to reimburse Bonchon for all costs incurred, but only if the event arises from the franchisee's actions or inactions, or relates solely to the franchisee's restaurant. The franchisee's indemnification obligations, as provided in Section 8.11, will apply to all losses and expenses resulting from Bonchon's exercise of management rights during a Crisis Management Event. Bonchon will not be liable to the franchisee for any losses arising from its actions or inactions under Section 8.28.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.