Do the sections regarding enforcement of covenants not to compete and injunctions in the Bonchon Franchise Agreement, Area Development Agreement, and Software License Agreement apply to franchises offered and sold in Indiana?

According to Bonchon's 2025 Franchise Disclosure Document, specific sections regarding the enforcement of covenants not to compete and injunctions within the Franchise Agreement, Area Development Agreement, and Software License Agreement do not apply to franchises offered and sold in Indiana. This is detailed in the Indiana Addenda to these agreements. Specifically, Section 12.04 of the Franchise Agreement ("Enforcement of Covenants Not to Compete"), Section 11.02 of the Area Development Agreement ("Enforcement of Covenants Not to Compete"), Section 25.01 of the Franchise Agreement ("Injunction"), Section 13.03 of the Area Development Agreement ("Injunction") and Article VIII of the Software License Agreement ("Injunction") shall not apply to franchises offered and sold in the State of Indiana.

For prospective Bonchon franchisees in Indiana, this means that the standard terms related to enforcing non-compete clauses and seeking injunctions against franchisees may not be enforceable as written in the standard agreements. Indiana law will take precedence over these sections. This could affect Bonchon's ability to prevent a former franchisee from opening a competing business or taking other actions that would typically be restricted by these clauses.

It is important for potential franchisees to understand the specific implications of these differences under Indiana law. While the standard agreement might outline certain restrictions and remedies, the Indiana addenda modify these provisions to align with state regulations. Therefore, franchisees should seek legal counsel to fully grasp their rights and obligations concerning non-compete agreements and injunctions within the state of Indiana.