Are there any exceptions to the class action waiver for Bonchon in the Stripe Services Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
13.7 No Jury Trial.
If for any reason a claim or dispute proceeds in court rather than through arbitration, each party knowingly and irrevocably waives any right to trial by jury in any action, proceeding or counterclaim arising out of or relating to this Agreement or any of the transactions contemplated between the parties.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, disputes between a franchisee and Stripe are generally subject to a class action waiver and must be resolved through individual binding arbitration, as detailed in Section 13 of the General Terms of the Stripe Services Agreement. However, Section 13.7 of the agreement provides an exception: if a claim or dispute proceeds in court rather than through arbitration for any reason, both parties knowingly and irrevocably waive any right to a trial by jury. This waiver applies to any action, proceeding, or counterclaim arising out of or relating to the agreement or any transactions contemplated between the parties.
In practical terms, this means that while Bonchon franchisees are typically required to resolve disputes with Stripe through individual arbitration, there is a specific circumstance where a court case might occur. Should a dispute end up in court, both the franchisee and Stripe forfeit their right to a jury trial. This provision ensures that even in the event of litigation, the dispute will be resolved by a judge rather than a jury.
This jury trial waiver is a significant legal consideration for prospective Bonchon franchisees. It is essential to understand that by agreeing to the Stripe Services Agreement, franchisees are giving up the right to have a jury decide their case if it goes to court. Instead, a judge will make the determination. Franchisees should consult with legal counsel to fully understand the implications of this waiver and how it might affect their rights in the event of a dispute with Stripe.