Does Bonchon require franchisees to complete any questionnaires or acknowledgments that are contrary to the Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
If the franchise agreement or any agreement executed by the franchisee in connection therewith (including but not limited to, if applicable, an area development agreement), includes any questionnaire to be completed by or acknowledgments to be made by the franchisee that are contrary to the Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments, adopted on September 18, 2022 by the North American Securities Administrators Association, Inc. (with an effective date of January 1, 2023), then any such questionnaire and/or acknowledgments shall not apply to prospective franchisees who are Maryland residents or who seek to purchase a franchise located in Maryland.
California's Franchise Investment Law (Corporations Code sections 31512 and 31512.1) states that any provision of a franchise agreement or related document requiring the franchisee to waive specific provisions of the law is contrary to public policy and is void and unenforceable. The law also prohibits a franchisor from disclaiming or denying (i) representations it, its employees, or its agents make to you, (ii) your ability to rely on any representations it makes to you, or (iii) any violations of the law.
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- No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, any questionnaires or acknowledgments that franchisees complete in connection with starting their franchise relationship cannot waive claims under state franchise law, including fraud in the inducement, or disclaim reliance on statements made by Bonchon or its representatives. This provision overrides any other conflicting terms in any document related to the franchise agreement.
For prospective franchisees in Maryland, if the franchise agreement or any related agreement includes questionnaires or acknowledgments that contradict the Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments adopted by the North American Securities Administrators Association, Inc. on September 18, 2022 (effective January 1, 2023), such questionnaires or acknowledgments will not apply. This ensures that Maryland franchisees are not bound by terms that might compromise their rights under franchise laws.
In California, the Franchise Investment Law prohibits any provision in the franchise agreement or related documents that requires a franchisee to waive specific provisions of the law. This law also prevents Bonchon from disclaiming representations made to the franchisee, denying the franchisee's ability to rely on those representations, or disclaiming any violations of the law. These protections ensure that franchisees in California retain their legal rights and recourse.
These stipulations are designed to protect franchisees by ensuring that certain rights and legal protections cannot be waived through standard questionnaires or acknowledgments at the beginning of the franchise relationship. Prospective franchisees should carefully review all documents and understand their rights within their specific state.