What section of the Bonchon Area Development Agreement specifies the choice of forum for litigation?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provisions | Section in Area Development Agreement | Summary |
|---|---|---|
| v. Choice of forum | Sections 18.13 and 13.03 | Litigation must be in New York, New York, except that we may bring an action for an injunction in any court with jurisdiction (see Area Development Agreement). (Subject to state law). |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the choice of forum for litigation is specified in Sections 18.13 and 13.03 of the Area Development Agreement. This means that any litigation must occur in New York, New York. However, Bonchon can bring an action for an injunction in any court that has jurisdiction. It is important to note that these provisions are subject to state law, which may supersede the agreement and render it unenforceable in certain states.
This "choice of forum" clause is a standard element in franchise agreements. It dictates where legal disputes must be resolved, which can significantly impact a franchisee's costs and convenience if a dispute arises. By specifying New York, Bonchon ensures that disputes will be resolved in a location convenient for them, potentially creating a disadvantage for franchisees located elsewhere.
Prospective Bonchon franchisees should carefully consider the implications of this clause. They may want to consult with an attorney to understand how this provision could affect them, especially if they are located far from New York. Understanding the local state laws that may supersede this provision is also crucial. Franchisees should also be aware of the conditions under which Bonchon may pursue legal action in other jurisdictions.