factual

Under what circumstances can Bonchon bring an action for an injunction in any court with jurisdiction?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

Provisions Section in Area Development Agreement Summary
v. Choice of forum Sections 18.13 and 13.03 Litigation must be in New York, New York, except that we may bring an action for an injunction in any court with jurisdiction (see Area Development Agreement). (Subject to state law).

Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION THE FRANCHISE RELATIONSHIP (FDD pages 71–81)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can bring an action for an injunction in any court with jurisdiction. However, any other litigation initiated by either party must be conducted in New York, New York. This is detailed in the Area Development Agreement. This clause is subject to state law, meaning that the enforceability of the New York forum selection may vary depending on the franchisee's state.

This means that while general disputes will be handled in New York courts, Bonchon retains the right to seek injunctive relief (a court order to stop someone from doing something) in any court that has the power to issue such an order, regardless of location. This is particularly relevant when Bonchon needs to act quickly to prevent immediate harm, such as a franchisee infringing on trademarks or violating non-compete agreements.

For a prospective Bonchon franchisee, this clause has important implications. While they may prefer to resolve disputes closer to home, they must be prepared to litigate in New York for most issues. However, they should also understand that Bonchon can pursue injunctive relief against them in any jurisdiction where they are operating, which could lead to quicker and potentially more geographically convenient legal action in certain situations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.