Does Bonchon assume liability for the license granted by the franchisee for intellectual property developed for the Business?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
w-how used or embraced by the Bonchon System, the Manuals, and many other matters specified in the Franchise Agreement.
You must irrevocably license to us all intellectual property, services, products, equipment, programs, sales, marketing, advertising and promotional programs, campaigns or materials, and sales methods
![
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 develops any intellectual property for their Bonchon business, they must license it to Bonchon. Bonchon explicitly states that it will not be liable to the franchisee in any way because of this license.
This means that while a franchisee might create something of value for their business, such as a new marketing campaign or a more efficient operational method, Bonchon retains the right to use it across the entire franchise system without owing any compensation or assuming any liability to the originating franchisee. The franchisee effectively gives up all rights to their creation.
This is a significant point for potential franchisees to consider. While franchisees benefit from the established Bonchon system, they also relinquish control over any innovations they might introduce. It's crucial to understand that any intellectual property developed for the Bonchon business automatically becomes the property of Bonchon, with no guarantee of recognition or compensation for the franchisee's efforts.