Under what circumstances would a Bonchon franchisee be required to reimburse Bonchon for costs related to managing a Crisis Management Event?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that, if we elect to direct the management of any Crisis Management Event, we or our designee may engage the services of attorneys, experts, doctors, testing laboratories, public relations firms and those other professionals as we deem appropriate, and we may require you to reimburse us for all such costs provided, however, that you shall only be required to reimburse us for such costs to the extent the Crisis Management Event (i) arises, directly or indirectly, from the actions or inactions of you or (ii) relates solely to, or solely occurs in or about, your Bonchon Restaurant.
Your indemnification obligations as provided in Section 8.11 shall apply to all losses and expenses that may result from our or our designee's exercise of the management rights granted in this Section.
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Our rights under this Section 8.28 shall be exercised in our sole business judgment and nothing in this Section 8.28 shall be deemed to require us to act, manage or remediate any Crisis Management Event.
Our rights under this Section 8.28 shall continue until we determine that the Crisis Management Event is resolved.
We shall have no liability to you for any losses arising from our actions or inactions under this Section Bonchon Restaurants 8.28.
D. "Crisis Management Event" means any event or incident that:
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- occurs at or about, or impacts, your Bonchon Restaurant that has or may cause real or perceived harm or injury to member or employees, such as equipment malfunction, food contamination or other food safety issue, matters affecting the health, safety or well-being of any member, employee or the public at the Restaurant, epidemics, pandemics or other contagious diseases, natural disasters, criminal or terrorist acts, shootings, or any other circumstances which may have the actual or potential ability to damage the System, the Proprietary Marks, or the image or reputation of us or our affiliates; and/or
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- occurs at or about, or impacts (or has the ability to impact regardless of whether such impact so occurs) one or more Bonchon Restaurant that (x) has or may cause real or perceived harm or injury to the System, the Proprietary Marks, or the image or reputation of us or our affiliates or (y) has or may cause harm or injury to members, employees or the public, including, but not limited to, incidents or events relating to equipment malfunction, food contamination or other food safety issue, matters affecting the health, safety or well-being of any member, employee or the public at the Restaurant, epidemics, pandemics or other contagious diseases, natural disasters, criminal or terrorist acts, shootings, or any other circumstances which may damage the System, the Proprietary Marks, or the image or reputation of us or our affiliates; and/or
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee may be required to reimburse Bonchon for costs associated with managing a Crisis Management Event under specific circumstances. Bonchon retains the right to manage any Crisis Management Event, including communicating with third parties, temporarily closing restaurants, or modifying service offerings. The franchisee and their employees must fully cooperate with Bonchon's management efforts during such an event.
Specifically, a Bonchon franchisee is required to reimburse Bonchon for costs incurred in managing a Crisis Management Event if the event (i) arises directly or indirectly from the actions or inactions of the franchisee, or (ii) relates solely to, or solely occurs in or about, the franchisee's Bonchon Restaurant. These costs may include the engagement of attorneys, experts, doctors, testing laboratories, and public relations firms, as deemed appropriate by Bonchon.
It is important to note that Bonchon is not obligated to act, manage, or remediate any Crisis Management Event, and Bonchon will not be liable for any losses arising from their actions or inactions during such an event. The franchisee's indemnification obligations, as provided in Section 8.11 of the agreement, will apply to all losses and expenses resulting from Bonchon's exercise of management rights during a Crisis Management Event. A "Crisis Management Event" is defined as an event or incident that occurs at or impacts a Bonchon Restaurant that may cause harm or injury to members or employees, damage the Bonchon system, or result in governmental action impacting the restaurant's operations.