What is the basis on which services, equipment, and the designated customer area are provided to Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
d for a franchise to own and operate a Bonchon Restaurant.
2. GRANT OF FRANCHISE AND LICENSE
2.01 Grant of Franchise and Licenses
We grant you, and you accept, the right to use the Proprietary Marks and the System in connection with establishing and operating a Bonchon Business and Restaurant from the Restaurant Location specified in Section 3.01 of this Agreement. You agree to use the Proprietary Marks and Bonchon System as we may change, improve, modify or further develop them from time to time as provided in this Agreement, and to operate your Bonchon Business and its Restaurant only in accordance with the terms and conditions of this Agreement and all related agreements, the Manuals and any Supplement to the Manuals. You further agree to honestly and diligently perform your obligations under this Agreement and to use your best efforts to promote the Restaurant. You may not subfranchise or otherwise grant to any other "Person" (meaning both natural persons and legal entities, including corporations, partnerships, limited liability companies and trusts) any interest in this Agreement or the franchise granted hereby, except as otherwise provided in this Agreement.
3. RESTAURANT LOCATION
3.01 Restaurant Location; Protected Territory
Your right to operate a Bonchon Business and Restaurant is restricted to the location designated in Exhibit A (the "Restaurant Location"). Your Bonchon Business will be prohibited from directly delivering products to customers; rather, it will be required to utilize a third-party delivery service that we have designed and/or approved in advance in order to fulfill online delivery orders. Under this Agreement, your Bonchon Business may establish only one Bonchon Restaurant located at the Restaurant Location. You shall be granted a protected territory that will be a certain area around your Restaurant Location (the "Protected Territory"). Your Protected Territory will be described in Exhibit A annexed hereto. If we use both a written description and a map to define your Protected Territory, you acknowledge and expressly agree that should there be a conflict between the written description and the map, the written description will control.
3.02 Our Restrictions
Within the Protected Territory, neither we nor any affiliate (as defined in Section 3.04 below) will operate or grant a franchise for a Bonchon Business operated under the Proprietary Marks of the type franchised to you hereunder, except as provided in Section 3.04 ("Rights We Reserve"). These restrictions will terminate immediately upon the expiration or termination of this Agreement for any reasons.
Outside of the Protected Territory, we and/or our affiliates reserve the right to operate any number of Bonchon Businesses and Restaurants, and/or authorize others to operate same, at any location whatsoever, including one or more locations that may be proximate to, adjacent to or abutting the boundary of the Protected Territory.
3.03 Your Restrictions
Your Bonchon Business may only offer and sell its products and services in, at and from your Bonchon Restaurant at the Restaurant Location situated within the Protected Territory. Under no circumstance may your Business establish any physical presence outside of your Protected Territory at or from which your products or services are sold or furnished. Nor may your Business offer or sell any products or services anywhere, through any means or manner other than your Restaurant, including alternative channels of distribution, such as the internet/worldwide web and other forms of electronic commerce; "800" or similar toll-free telephone numbers (other than those we establish and make available to you for your customers to place orders with your franchised Restaurant); supermarkets, grocery stores or convenience stores; mail orders; catalogs; telemarketing or other direct marketing sales; or, any other channel of distribution whatsoever except for your franchised
Bonchon Restaurant at the Restaurant Location situated in the Protected Territory.
You may only engage in the retail sale of Bonchon System products and services.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are granted the right to use Bonchon's proprietary marks and system to operate a restaurant at a specific location. This right is defined in the franchise agreement, which outlines the terms and conditions for operating the Bonchon business. The restaurant's location is restricted to the designated location in Exhibit A of the agreement, and the franchisee is typically granted a protected territory around that location.
Bonchon requires franchisees to purchase certain proprietary products, logoed packaging, supplies, equipment, materials, and services from designated or approved suppliers. These designated sources and specifications are subject to change. Franchisees must adhere to Bonchon's standards, specifications, and requirements to maintain consistent quality. Bonchon may also enter into systemwide supply contracts, requiring franchisees to purchase products, services, or equipment from specific vendors.
Bonchon also emphasizes the importance of state-of-the-art technology and requires franchisees to comply with hardware and software purchase and utilization requirements. Bonchon retains the right to sell products and services to national, regional, and institutional accounts, even within a franchisee's development territory. The franchise agreement does not grant marketing exclusivity in the development territory, and all Bonchon businesses can solicit and service customers regardless of location.