Under what circumstances related to a Crisis Management Event at a Bonchon restaurant might a franchisee be required to reimburse Bonchon for costs?
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.
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 has the discretion to manage how a crisis is handled, including communicating with third parties, temporarily closing restaurants, or modifying service offerings.
Bonchon may engage professionals such as attorneys, experts, and public relations firms to manage the Crisis Management Event. The franchisee is required to reimburse Bonchon for these costs only if the Crisis Management Event arises directly or indirectly from the franchisee's actions or inactions, or if the event relates solely to or occurs in or about the franchisee's Bonchon Restaurant.
This means that if a crisis is caused by the franchisee's negligence or if it is isolated to their specific location, they will bear the financial responsibility for Bonchon's crisis management expenses. However, Bonchon retains the right to decide whether to act and is not liable for any losses arising from their actions or inactions during such events. Franchisees also have indemnification obligations for losses and expenses resulting from Bonchon's management of a Crisis Management Event.