Does the Bonchon Area Development Agreement include a Confidentiality/Non-Competition Agreement, and if so, where is it located?

According to Bonchon's 2025 Franchise Disclosure Document, both the Franchise Agreement and the Area Development Agreement require specific individuals to sign a Confidentiality/Non-Competition Agreement. This agreement is identified as Exhibit E to the Franchise Agreement and Exhibit C to the Area Development Agreement. Alternatively, a Confidentiality Agreement (Exhibit F to the Franchise Agreement and Exhibit D to the Area Development Agreement) may be required.

This means that as a Bonchon franchisee, you and potentially other individuals associated with your business (such as managers or key employees) will be legally bound to protect Bonchon's confidential information and adhere to non-competition terms. These agreements are designed to safeguard Bonchon's proprietary information, business methods, and market position.

The inclusion of these agreements is a standard practice in franchising to protect the franchisor's intellectual property and prevent franchisees from using confidential information to compete with the franchisor, either during the franchise term or after its termination. Prospective franchisees should carefully review the terms of these agreements with legal counsel to understand the scope of the restrictions and their obligations.

It is important to note that the specific terms of the Confidentiality/Non-Competition Agreement and the Confidentiality Agreement are detailed in the exhibits referenced (Exhibit C, Exhibit D, Exhibit E, and Exhibit F). A potential Bonchon franchisee should carefully review these exhibits to fully understand the obligations and restrictions they impose.