factual

Where can a Bonchon Business offer and sell its products and services?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

Your Bonchon Business may only offer and sell its products and services from your Bonchon Restaurant at the Restaurant Location situated within your designated Protected Territory. 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. Your Business may not sell any products or services through any alternative channels of distribution, such as the internet/worldwide web and other forms of electronic commerce; "800" or similar toll-free telephone numbers; supermarkets, grocery stores or convenience stores; mail orders; catalogs; telemarketing or other direct marketing sales; or, any other channel of distribution except for your franchised Bonchon Restaurant at the Restaurant Location situated within your Protected Territory.

Source: Item 12 — TERRITORY (FDD pages 60–65)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, a Bonchon Business may only offer and sell its products and services from the Bonchon Restaurant at the Restaurant Location situated within the designated Protected Territory. However, the business is prohibited from directly delivering products to customers and must use a third-party delivery service approved by Bonchon to fulfill online delivery orders. The Bonchon Business cannot sell products or services through alternative channels of distribution, such as the internet, toll-free numbers, supermarkets, mail orders, catalogs, or telemarketing, except for the franchised Bonchon Restaurant at the Restaurant Location within the Protected Territory.

Bonchon and its affiliates retain the right to sell Bonchon System products and services through various alternative channels, including the internet, electronic commerce, toll-free numbers, mail order, catalogs, television sales, and telemarketing, both within and outside the franchisee's Protected Territory. They also have the right to offer and sell products and services at nontraditional locations such as sports arenas, theaters, resorts, food retailers, malls, schools, hospitals, airports, guest lodging facilities, day care facilities, government facilities, condominium complexes, third-party retailers, military bases, and transportation facilities, including those within the franchisee's Protected Territory. The franchisee will not receive compensation for sales made by Bonchon or its affiliates through these alternative channels or at nontraditional locations.

Bonchon and its affiliates also have the exclusive right to sell Bonchon System products and services to national, regional, and institutional accounts both within and outside the Protected Territory. These accounts include business entities, government agencies, guest lodging networks, healthcare networks, and the military. Bonchon retains the right to contract with these accounts, even if they include facilities within the franchisee's Protected Territory. If Bonchon receives orders for delivery within the franchisee's territory, they may offer the franchisee the opportunity to fulfill the order at the agreed price. However, if the franchisee cannot or does not want to serve the customer, or if the customer prefers to deal directly with Bonchon, its affiliate, or another franchisee, Bonchon may serve the customer without compensating the franchisee.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.