What is 'Co-Branding' in the context of a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to modifications of the Bonchon System, we may at times co-brand one or more restaurant concepts which we or our affiliates operate with Bonchon System Restaurants and/or offer for sale in Bonchon System Restaurants products sold in businesses operated by us and/or our affiliates (collectively, "Co-Branding"). This Co-Branding may involve changes to the Proprietary Marks, and may require you to modify the building and premises of your Bonchon System Restaurant and the furnishing, fixtures, equipment, signs and trade dress at your Bonchon System Restaurant. If you receive written notice of our institution of Co-Branding, you must implement the Co-Branding at your franchised Business. The Franchise Agreement does not place any limit on our rights to require you to make changes for Co-Branding.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, co-branding refers to Bonchon's potential integration of one or more restaurant concepts operated by Bonchon or its affiliates with Bonchon System Restaurants. It also includes offering products sold in businesses operated by Bonchon or its affiliates within Bonchon System Restaurants. This means Bonchon may choose to combine its brand with other restaurant brands or sell other affiliated products within a Bonchon franchise location.
This co-branding initiative may involve modifications to Bonchon's Proprietary Marks, which are the service mark and trade name "Bonchon", and other trade names, trademarks and service marks that Bonchon specifies. Furthermore, franchisees may be required to modify their restaurant's building, premises, furnishings, fixtures, equipment, signs, and trade dress to accommodate the co-branding.
If Bonchon decides to implement co-branding, franchisees will receive written notice and are obligated to implement the changes at their franchised business. The Franchise Agreement does not limit Bonchon's right to require these changes for co-branding. This implies that franchisees must be prepared to invest in and adapt their businesses to align with Bonchon's co-branding strategies, which could involve significant alterations to the restaurant's appearance and offerings.