What specific warranty does Bonchon provide regarding the rights granted to the licensee in the agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Apart from the license rights specifically enumerated in this Agreement, this Agreement does not include a grant to Licensee of any ownership right, title or interest, nor any security interest or other interest, in any Intellectual Property Rights (as defined in the following sentence) relating to the Software or any part of the Software. "Intellectual Property Rights" means any and all rights to exclude under patent law, copyright law, oral rights law, trade-secret law, semiconducter chip protection law, trademark law, unfair competition law or other similar rights.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the agreement specifies that apart from the explicitly stated license rights, no other ownership, title, or interest in any intellectual property is granted to the licensee. Bonchon retains all rights to its software, system documentation, and any provided materials.
This means that while franchisees are granted a license to use Bonchon's software and intellectual property to operate their franchise, they do not gain any ownership over these assets. The franchisee's rights are limited to the specific terms outlined in the franchise agreement. Bonchon retains the title to the Bonchon Software, the system documentation manuals, and any additional materials and information furnished by Bonchon.
This is a standard practice in franchising, as the franchisor needs to maintain control over its brand and intellectual property. Prospective Bonchon franchisees should be aware that their rights to use Bonchon's intellectual property are limited to the terms of the franchise agreement and that Bonchon can revise the Bonchon Software or any part of the Software from time to time, and Licensor incurs no obligation to furnish said revisions to Licensee and other licensees in the Bonchon franchise network.