Besides the franchisee, which individuals are Bonchon franchisees required to have execute the Confidentiality/Non-Competition Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to require and obtain the execution of our Confidentiality/Non-Competition Agreement (Exhibit E) from all of the following persons:
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- Before employment or any promotion of your Operating Principal (if such individual has an ownership interest in you); and,
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- If you are a business entity, and as applicable, all of your owners, equity holders, control persons, shareholders, members, partners and general partner(s); all of your officers, directors and managers; and, all persons possessing equivalent positions in any business entity which directly or indirectly owns and/or controls you. You shall procure all such Confidentiality/Non-Competition Agreements no later than ten days following the Effective Date (or, if any individual or entity attains any status identified above after the Effective Date, within ten days following such individual or entity's attaining such status) and shall furnish to us copies of all executed Confidentiality/Non-Competition Agreements within ten days following their execution.
You agree to require and obtain the execution of our Confidentiality Agreement (Exhibit F) from your Operating Principal (if such individual does not hold an ownership interest in you), General Manager, Area Manager and all other managerial staff before their employment or promotion.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees must ensure that certain individuals and entities associated with their franchise also execute a Confidentiality/Non-Competition Agreement. This requirement extends beyond just the franchisee to include other parties who could potentially gain access to Bonchon's confidential information or engage in competitive activities.
Specifically, if the Operating Principal has an ownership interest in the franchise, they must execute the agreement before employment or promotion. If the franchisee is a business entity, the agreement must be executed by all owners, equity holders, control persons, shareholders, members, partners, and general partners, as well as all officers, directors, and managers. This also applies to individuals holding equivalent positions in any business entity that directly or indirectly owns or controls the franchisee.
Bonchon requires franchisees to obtain these agreements within ten days of the effective date or within ten days of an individual or entity attaining a relevant status. Copies of the executed agreements must be furnished to Bonchon within ten days of their execution. Franchisees are also obligated to vigorously prosecute any breaches of these agreements, and Bonchon retains the right to enforce these agreements independently.