Does any statement signed by a Bonchon franchisee at the start of the franchise relationship waive claims under state franchise law, including fraud in the inducement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
No statement, questionnaire, or acknowledgement signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, addenda for several states (Illinois, California, Hawaii, Maryland, North Dakota, and Rhode Island) clarify that no statement, questionnaire, or acknowledgment signed by a franchisee at the start of the franchise relationship can waive claims under applicable state franchise law. This explicitly includes claims related to fraud in the inducement. These provisions override any conflicting terms in other franchise documents.
For prospective Bonchon franchisees, this means that signing any document related to starting the franchise does not prevent them from pursuing legal claims under state franchise laws. This protection extends to claims of fraud, where a franchisee might argue they were misled into investing in the franchise. The addenda ensure that franchisees retain their legal rights and recourse, regardless of any waivers or acknowledgments they may have signed.
It is important to note that these protections are specifically outlined in the addenda for Illinois, California, Hawaii, Maryland, North Dakota, and Rhode Island. Franchisees in other states may not have the same explicit protection, so it is crucial to review the specific franchise agreement and any state-specific addenda carefully. If a state addendum is not included, it would be prudent for a prospective franchisee to seek legal counsel to understand their rights and protections under the laws of their specific state.