What is the standard used to determine if a remedy at law is 'adequate' for a breach of the Bonchon agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
y claim or assertion that we have unreasonably withheld or delayed any consent or approval under this Franchise Agreement. You waive any such claim for damages. You may not claim any such damages by way of setoff, counterclaim or defense. Your sole remedy for the claim will be an action or proceeding to enforce the Agreement provisions, for specific performance or for declaratory judgment.
25. INJUNCTION
25.01 Injunction
You explicitly affirm and recognize the unique value and secondary meaning attached to the Bonchon System and the Proprietary Marks. Accordingly, you agree that any noncompliance by you with the terms of this Agreement, or any unauthorized or improper use of the Bonchon System or the Proprietary Marks by you, will cause irreparable damage to us and other Bonchon System franchisees. You therefore agree that if you engage in this non-compliance, or unauthorized and/or improper use of the Bonchon System or Proprietary Marks, during or after the term of this Agreement, we and our affiliates will be entitled to both temporary and permanent injunctive relief against you from any court of competent jurisdiction, in addition to all other remedies which we may have at law.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the standard for determining if a remedy at law is 'adequate' is waived in the context of injunctive relief. Bonchon franchisees acknowledge the unique value of the Bonchon system and proprietary marks. Franchisees agree that any non-compliance with the terms of the agreement or unauthorized use of the Bonchon system or marks will cause irreparable damage to Bonchon and its other franchisees.
Because of the potential for irreparable harm, Bonchon is entitled to temporary and permanent injunctive relief against a franchisee from any court, in addition to all other remedies available at law. The franchisee consents to the entry of these injunctions without Bonchon needing to post a bond or prove that money damages are an adequate remedy.
This means that Bonchon does not have to demonstrate that monetary compensation would be insufficient to cover the damages caused by a franchisee's breach. This provision streamlines Bonchon's ability to quickly obtain court orders to stop actions that could harm the brand or system, such as misuse of trademarks or operational violations. The franchisee is also responsible for covering all costs and legal fees Bonchon incurs while securing injunctive relief.