Are there any exceptions to the limitation of liability for Bonchon franchisees under the Franchisee Service Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
management, employees, agents, servants, contractors, partners, proprietors, affiliates or representatives of you and/or the franchised Business and/or Restaurant (or any third party acting on your behalf or at your direction), whether in connection with the franchised Business, the Restaurant or otherwise, including (without limitation) any property damage, injury or death suffered or caused by any vehicle serving your franchised Business; any claim, however and wherever asserted, that we or our affiliates are the employer, joint employer or co-employer of you and/or your employees (including, without limitation, any claims against us for your violation of any federal, local or state labor and/or wage and hour laws, rules or regulations); third party claims against us arising from or related to your breach of the terms, restrictions and requirements of this Agreement (including, without limitation, your unauthorized use of the Proprietary Marks, violation of any applicable laws, codes, rules or regulations or failure to comply with Privacy Laws); your violation of Privacy Laws; all activities, conduct and representations which you may engage in connected to any actual or attempted assignment (as defined in Section 14.02) of any interest whatsoever in you or the franchised Restaurant or Business (or any entity which controls (as defined in Section 14.02) you or the franchised Restaurant or Business);all liabilities arising from or related to your offer and/or sale of products and/or services as contemplated by this Agreement; and, any action by any customer of yours or visitor to your Bonchon Restaurant or any other facility of your franchised Business (collectively, an "Indemnification Claim").
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to indemnify Bonchon and related parties against various claims and liabilities. This means the franchisee agrees to protect Bonchon from financial losses resulting from the franchisee's actions or the actions of their business.
Specifically, the franchisee must indemnify Bonchon against claims arising from the franchisee's management, employees, agents, or any third party acting on their behalf. This includes liabilities for property damage, injury, or death caused by vehicles serving the Bonchon franchise. It also covers claims that Bonchon is the employer or co-employer of the franchisee's employees, breaches of the Franchise Agreement, unauthorized use of Bonchon's trademarks, violations of laws or privacy regulations, and any activities related to attempted assignments of the franchise.
Furthermore, the indemnification extends to liabilities arising from the franchisee's sale of products or services and any actions by customers or visitors to the Bonchon restaurant. This broad indemnification clause means that franchisees could be held financially responsible for a wide range of potential issues, making it crucial to maintain adequate insurance coverage and adhere strictly to Bonchon's operating standards and legal requirements.