Does Bonchon require that the Participating Franchisee warrant they possess the legal authority to bind its franchisees and licensees to the terms and conditions of the Pepsi-Cola agreement?

According to Bonchon's 2025 Franchise Disclosure Document, if the franchisee is a business entity, Bonchon requires the franchisee to warrant they have the power and authority to execute, deliver, consummate, and perform the Franchise Agreement. Additionally, the franchisee must confirm that all necessary business entity proceedings have been taken to authorize the execution, delivery, and performance of the agreement. Bonchon also requires the franchisee to acknowledge that the agreement has been authorized, executed, and delivered by them, includes their legal, valid, and binding obligations, and will be binding and enforceable upon them and their successors and assigns in accordance with its terms when executed by both parties.

This means that Bonchon needs assurance that the person signing the agreement on behalf of the franchisee has the legal right to do so. This protects Bonchon by ensuring the agreement is valid and enforceable.

However, the FDD excerpt does not specifically state that the franchisee must warrant they possess the legal authority to bind its franchisees and licensees to the terms and conditions of the Pepsi-Cola agreement. A prospective franchisee should clarify with Bonchon whether such a warranty is required, especially if they intend to sub-franchise or license their Bonchon business.