What is the anticipated general rule for the minimum radius of a Bonchon Restaurant's Protected Territory?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
The Protected Territory for your Bonchon Business depends on your market area, including population density, drive times, and similar factors. There is no set minimum or maximum Protected Territory. However, we do not anticipate (as a general rule) that the radius will ever be greater than 3 miles from the Bonchon Business or less than 0.25 miles. If your Bonchon Business will operate a Remote Kitchen Restaurant, your Protected Territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. Your Restaurant's specific Protected Territory will be somewhere in that range depending on your specific market and circumstances. For Restaurants located in high-density population centers, your Protected Area will be determined on a case-by-case basis.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the general rule for a Bonchon Restaurant's protected territory is based on a radius extending outward from the restaurant's location. Bonchon does not anticipate that the radius will be less than 0.25 miles, except in the case of Remote Kitchen Restaurants. However, there is no set minimum or maximum Protected Territory. The specific size of the Protected Territory depends on factors such as market area, population density, and drive times. For Restaurants located in high-density population centers, the Protected Territory will be determined on a case-by-case basis.
For a prospective Bonchon franchisee, this means the protected territory is not guaranteed to be a specific size. The actual territory size will depend on a variety of factors that Bonchon will evaluate. This introduces some uncertainty, as a smaller territory could limit the potential customer base and sales volume.
It's important to note that Bonchon and its affiliates retain the right to operate Bonchon Businesses or authorize others to operate them at any location, including those near or adjacent to a franchisee's Protected Territory. They also have the right to offer and sell Bonchon products through alternative channels of distribution, such as the internet, without compensating the franchisee. A prospective franchisee should carefully consider these factors and how they might impact their business before investing in a Bonchon franchise.