Does the release language in the Bonchon Area Development Agreement relieve the Franchisor from liability imposed by Minnesota franchise laws?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
No release language set forth in the Area Development Agreement will relieve the Franchisor or any other person, directly or indirectly, from liability imposed by the laws concerning franchising of the State of Minnesota.
Minnesota law provides area developers with certain termination and non-renewal rights.
Minnesota Statutes, Section 80C.14, subdivisions 3, 4, and 5 require, except in certain specified cases, that Area Developer be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the area development agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Minnesota Addendum to the Area Development Agreement specifically addresses the enforceability of release language. It states that no release language within the Area Development Agreement will relieve Bonchon from liability imposed by Minnesota franchise laws. This provision ensures that area developers in Minnesota retain all rights and protections afforded to them under Minnesota Statutes, Chapter 80C.
This addendum also reinforces that nothing in the disclosure document or agreement can reduce any of the area developer's rights as provided by Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by Minnesota law. This safeguards the area developer's legal recourse and ensures that Bonchon cannot circumvent Minnesota's franchise regulations through contractual clauses.
Furthermore, the Minnesota Addendum includes stipulations regarding venue, termination, and non-renewal rights, and the protection of trademarks. These provisions collectively aim to provide additional clarity and protection for Bonchon area developers operating in Minnesota, ensuring compliance with state-specific franchise laws.