Are there any circumstances under which a Bonchon franchisee in Washington can bring an action or proceeding related to the sale of franchises in Washington?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if litigation is not precluded by the franchise agreement, a franchisee may bring an action or proceeding arising out of or in connection with the sale of franchises, or a violation of the Washington Franchise Investment Protection Act, in Washington.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee in Washington may be able to bring an action or proceeding related to the sale of franchises. Specifically, if the franchise agreement does not preclude litigation, a Bonchon franchisee can bring an action or proceeding in Washington if it arises out of or is connected to the sale of franchises, or involves a violation of the Washington Franchise Investment Protection Act.
This provision ensures that Bonchon franchisees in Washington have legal recourse if they believe they have been wronged during the franchise sales process or if Bonchon violates the state's franchise laws. This protection is particularly important because franchise agreements often contain clauses that could limit a franchisee's ability to sue the franchisor. However, this addendum clarifies that the franchisee retains the right to pursue legal action in Washington under certain circumstances.
It is important to note that this right is contingent on litigation not being precluded by the franchise agreement itself. Franchisees should carefully review their franchise agreements and consult with legal counsel to understand the full scope of their rights and any limitations that may apply. The Washington Franchise Investment Protection Act is designed to protect franchisees, and this provision reinforces that protection by allowing franchisees to seek legal remedies within the state.