What is the anticipated general rule for the maximum radius of a Bonchon Restaurant's Protected Territory?

According to Bonchon's 2025 Franchise Disclosure Document, the Protected Territory for a Bonchon Restaurant is typically a circle centered on the restaurant's location. The size of this territory depends on factors like market area and population density. While there is no set minimum or maximum size, Bonchon states that, as a general rule, they do not anticipate the radius of the protected territory to be greater than 3 miles from the Bonchon Business, or less than 0.25 miles. However, for Remote Kitchen Restaurants, the protected territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. For Restaurants located in high-density population centers, the Protected Area will be determined on a case-by-case basis.

For a prospective Bonchon franchisee, this means the Protected Territory could vary significantly. The standard territory will likely fall between 0.25 and 3 miles in radius, but could be smaller (0.1 miles) for Remote Kitchen Restaurants. The actual size will depend on a market evaluation. In densely populated areas, the territory could be determined individually, potentially deviating from the general rule.

It's important to note that Bonchon and its affiliates retain the right to operate Bonchon Businesses or authorize others to do so at non-traditional locations, even within a franchisee's Protected Territory. These non-traditional locations include venues like sports arenas, malls, and airports. The franchisee will not receive any compensation for sales made at these non-traditional locations. This could impact a franchisee's potential revenue, as these alternative locations might draw customers away from the traditional Bonchon Restaurant. Franchisees should carefully consider the potential impact of these non-traditional locations when evaluating a franchise opportunity.