Does the release language in the Bonchon Franchise Agreement absolve the Franchisor from liability imposed by Minnesota franchising laws?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
No release language set forth in the Franchise 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 franchisees with certain termination and non-renewal rights.
Minnesota Statutes, Section 80C.14, subdivisions 3, 4, and 5 require, except in certain specified cases, that franchisee be given 90 days notice of termination (with 60 days to cure) and 180 days notice for non-renewal of the franchise agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the release language in the Franchise Agreement does not relieve Bonchon from liability imposed by Minnesota franchising laws. Specifically, the Minnesota Addendum to the Franchise Agreement clarifies that no release language within the agreement can absolve Bonchon or any other person or entity from liabilities established by Minnesota's franchising laws. This provision is designed to protect the rights of franchisees in Minnesota.
This protection is further reinforced by the statement that nothing in the disclosure document or the agreements can reduce any of the franchisee's rights as provided for in Minnesota Statutes, Chapter 80C, or their rights to any procedure, forum, or remedies provided by the laws of the jurisdiction. This ensures that Minnesota franchisees retain all rights and remedies available to them under state law, regardless of what the standard franchise agreement might otherwise stipulate.
In practical terms, this means that if a Bonchon franchisee in Minnesota has a legal claim against Bonchon under Minnesota's franchise laws, the franchisee can pursue that claim without being hindered by release language in the Franchise Agreement. This addendum helps to ensure that Bonchon franchisees in Minnesota are afforded the full protection of Minnesota state law.