Is there a class action waiver in the Stripe Services Agreement for Bonchon?

According to Bonchon's 2025 Franchise Disclosure Document, the Stripe Services Agreement includes a class action waiver. Specifically, Section 13 of the General Terms states that any dispute between a Bonchon franchisee and Stripe is subject to a class action waiver and must be resolved through individual binding arbitration. This means that franchisees cannot participate in a class action lawsuit against Stripe; instead, they must pursue any claims individually through arbitration.

This provision is significant because it limits a franchisee's legal options in the event of a dispute with Stripe. Arbitration typically involves a less formal process than court litigation, and the arbitrator's decision is usually binding. While arbitration can be faster and less expensive than going to court, it also means franchisees give up their right to a jury trial and the ability to join forces with other franchisees in a class action.

For a prospective Bonchon franchisee, this implies that they should carefully review the Stripe Services Agreement and understand the implications of the class action waiver and arbitration provision. If they anticipate potential disputes with Stripe, they should consider the potential limitations this clause places on their legal recourse. It is advisable to seek legal counsel to fully understand their rights and obligations under the agreement.

It is common for service agreements to include arbitration clauses and class action waivers. These provisions are intended to streamline dispute resolution and reduce the potential for large-scale litigation. However, franchisees should be aware of these terms and their potential impact on their ability to seek redress in case of a problem.