Under what circumstances would the General Release – Termination apply for a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
- I.
You (and if you are a business entity, your owners) must have signed our then-current form of General Release.
This General Release will not release us, from any future claims related to any Successor Franchise Agreement but will release us, our affiliates, and our respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants and employees, past and present, in their corporate and individual capacities from any and all claims you may have related to this Agreement or under federal, state or local laws, rules, regulations or orders; and,
If you have satisfied these conditions, then we will provide you with a Successor Franchise Agreement in the manner specified in the following section.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a General Release is required from the franchisee (and their owners, if the franchisee is a business entity) to be eligible for a Successor Franchise Agreement. This release is a standard legal document that protects Bonchon from potential claims related to the original franchise agreement.
Specifically, to qualify for a renewal term, the franchisee must sign Bonchon's then-current form of General Release. This release covers any and all claims the franchisee may have against Bonchon, its affiliates, and their respective officers, directors, shareholders, partners, members, agents, representatives, independent contractors, servants, and employees, past and present, in their corporate and individual capacities. The claims covered include those related to the original Franchise Agreement or arising under federal, state, or local laws, rules, regulations, or orders.
However, the General Release does not absolve Bonchon from future claims related to any Successor Franchise Agreement. This means that while the franchisee waives rights related to the initial agreement, they retain the ability to bring claims related to the new, successor agreement. This is a fairly standard practice in franchising, ensuring both parties start the new term with a clean slate regarding the original agreement while still being accountable for the terms of the renewed agreement.