What are the potential liabilities for Bonchon if it violates the terms of the Stripe Services Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
e Services, your Stripe Account, or Protected Data, or your failure to use or implement anti-fraud or data security measures. Further, the Stripe Parties are not liable for any losses, damages, or costs that you or others may suffer arising out of or relating to (a) your access to, or use of, the Services in a way that is inconsistent with this Agreement or the Documentation; (b) unauthorized access to servers or infrastructure, or to Stripe Data or Protected Data; (c) Service interruptions or stoppages; (d) bugs, viruses, or other harmful code that may be transmitted to or through the Service (e) errors, inaccuracies,
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https://stripe.com/legal/ssa 16/46
omissions or losses in or to any Protected Data or Stripe Data; (f) Content; or (g) your [or
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Section 12.2 outlines limitations on liability, specifying that Stripe Parties will not be liable to Bonchon or its affiliates for several types of damages, whether in contract, negligence, strict liability, tort, or other legal theory. These include lost profits, personal injury, property damage, loss of data, business interruption, indirect, incidental, consequential, exemplary, special, reliance, or punitive damages, even if foreseeable. This means Bonchon would likely bear the brunt of these losses if Stripe isn't liable.
Furthermore, the document states that Stripe Parties will not be liable for general damages exceeding the greater of (i) the total amount of Fees Bonchon paid to Stripe (excluding pass-through fees levied by Financial Partners) during the 3-month period immediately preceding the event giving rise to the liability, or (ii) $500 USD. This clause caps Stripe's potential liability to Bonchon for general damages, potentially leaving Bonchon responsible for covering substantial losses beyond this limit.
In addition, Section 6.2 allows Stripe to immediately suspend services to Bonchon and access to Stripe Technology if Bonchon breaches the agreement. Section 11 indicates that Stripe will defend Bonchon against any IP Claim and indemnify it against all IP Claim Losses. However, Section 12.1 states that Stripe is not liable for claims arising from various situations, including Bonchon's use of services, Protected Data, or defamatory conduct. These stipulations highlight the importance of Bonchon franchisees understanding their obligations under both the Bonchon franchise agreement and the Stripe Services Agreement to mitigate potential liabilities and operational disruptions.