What agreement must be signed by owners, equity holders, control persons, shareholders, members, partners and general partner(s) of a Bonchon franchisee business entity?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ncluding, but not limited to, their term, geographical area, and scope of activity to be restrained; (b) are designed to preclude competition which would be unfair to us; and (c) do not impose a greater restraint than is necessary to protect our goodwill and other legitimate business interests.
12.05 Procurement of Additional Covenants
You agree to require and obtain the execution of our Confidentiality/Non-Competition Agreement (Exhibit E) from all of the following persons:
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- Before employment or any promotion of your Operating Principal (if such individual has an ownership interest in you); and,
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- If you are a business entity, and as applicable, all of your owners, equity holders, control persons, shareholders, members, partners and general partner(s); all of your officers, directors and managers; and, all persons possessing equivalent positions in any business entity which directly or indirectly owns and/or controls you. You shall procure all such Confidentiality/Non-Competition Agreements no later than ten days following the Effective Date (or, if any individual or entity attains any status identified above after the Effective Date, within ten days following such individual or entity's attaining such status) and shall furnish to us copies of all executed Confidentiality/Non-Competition Agreements within ten days following their execution.
You agree to require and obtain the execution of our Confidentiality Agreement (Exhibit F) from your Operating Principal (if such individual does not hold an ownership interest in you), General Manager, Area Manager and all other managerial staff before their employment or promotion.
12.06 Your and Our Enforcement of Confidentiality/Non-Competition Agreements
You agree to vigorously and vigilantly prosecute to the fullest extent permitted by law breaches of any Confidentiality/Non-Competition Agreement executed by any of the individuals referenced in Section 12.05, and you acknowledge our right, to be exercised as we alone determine, to ourselves and enforce the terms of any such executed Confidentiality/Non-Competition Agreement.
Source: Item 14 — PATENTS, COPYRIGHTS AND PROPRIETARY INFORMATION (FDD pages 68–69)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee is a business entity, all owners, equity holders, control persons, shareholders, members, partners, and general partners must sign Bonchon's Confidentiality/Non-Competition Agreement. This requirement ensures that all individuals with a significant stake in the Bonchon franchise are legally bound to protect the company's confidential information and adhere to non-competition terms.
The franchisee must obtain these signed agreements no later than ten days following the Effective Date of the Franchise Agreement. If an individual or entity attains any of these statuses after the Effective Date, the franchisee has ten days from that date to secure the agreement. Copies of all executed Confidentiality/Non-Competition Agreements must be furnished to Bonchon within ten days following their execution.
Bonchon also emphasizes the importance of enforcing these agreements. Franchisees are required to vigorously prosecute any breaches of the Confidentiality/Non-Competition Agreement to the fullest extent permitted by law. Bonchon retains the right to independently enforce the terms of these agreements. Even if an individual who has not signed the agreement breaches its substantive provisions, the franchisee is still obligated to pursue legal action to the fullest extent possible.