Under what circumstances might the Bonchon disclaimer of warranty not apply to the licensee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
THIS DISCLAIMER OF WARRANTY CONSTITUTES AN ESSENTIAL PART OF THIS AGREEMENT. NO AGENT OF LICENSOR IS AUTHORIZED TO ALTER OR EXCEED THE WARRANTY OBLIGATIONS OF LICENSOR AS SET FORTH HEREIN. NO USE OF THE PRODUCT IS AUTHORIZED HEREUNDER EXCEPT UNDER THIS DISCLAIMER; PROVIDED, HOWEVER, THAT SOME STATES OR JURISDICTIONS DO NOT ALLOW EXCLUSIONS OF AN IMPLIED WARRANTY AND SOME STATES OR JURISDICTIONS DO NOT ALLOW THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, SO THAT THIS DISCLAIMER MAY NOT APPLY TO LICENSEE. TO THE EXTENT THAT LICENSOR MAY NOT, AS A MATTER OF APPLICABLE LAW, DISCLAIM ANY WARRANTY, THE SCOPE AND DURATION OF SUCH WARRANTY SHALL BE THE MINIMUM PERMITTED UNDER APPLICABLE LAW.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the disclaimer of warranty regarding the licensed software, materials, and information may not apply to a licensee under certain state or jurisdictional laws. Specifically, some states or jurisdictions do not allow the exclusion of an implied warranty, meaning that Bonchon cannot fully disclaim certain guarantees about the software's quality or performance. Additionally, certain regions may not permit the limitation or exclusion of liability for incidental or consequential damages.
This means that if a Bonchon franchisee operates in a state with such consumer protection laws, they may have more legal recourse against Bonchon for software-related issues than franchisees in other states. For example, if the software malfunctions and causes a loss of business, a franchisee in a state that does not allow the exclusion of liability for consequential damages might be able to recover those losses from Bonchon. The extent and duration of any warranty that Bonchon cannot disclaim will be the minimum permitted under the applicable law.
Prospective Bonchon franchisees should be aware of the specific laws in their state or jurisdiction regarding warranties and liability limitations. This information can help them understand their rights and potential remedies in case of software malfunctions or other issues related to the licensed materials. It is advisable to consult with a legal professional to fully understand the implications of these laws and how they apply to the franchise agreement.