Does the Bonchon confidentiality agreement cover information related to quality assurance programs used by Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
I specifically understand that, without limitation, the following constitute Confidential Information of Franchisor: all products, services, equipment, technologies and procedures relating to the Bonchon System; all systems of operation, services, programs, products, procedures, policies, standards, techniques, specifications and criteria which now comprise or in the future may comprise a part of the Bonchon System; Franchisor's Confidential Operating Manual (as same may be amended from time to time); Supplements and/or amendments to the Manual; records pertaining to customers or billings; methods of advertising and promotion; customers; instructional materials; staff composition and organization systems; quality assurance programs; supervision systems; recommended services; recordkeeping systems and materials; bookkeeping systems and materials; business forms; product and service order forms; general operations materials; revenue reports; standards of interior and exterior design and decor; activity schedules; job descriptions; advertising, promotional and public relations materials/campaigns/guidelines/philosophy; specifications, systems, standards, techniques, philosophies and materials, guidelines, policies and procedures concerning the Bonchon System; additions to, deletions from, and modifications and variations of the components constituting the Bonchon System or the systems and methods of operations which are now, or may in the future, be employed by Franchisor, including all standards and specifications relating thereto and the means and manner of offering and selling same; and, all other components, specifications, standards, requirements and duties imposed by Franchisor or its Affiliates.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the confidentiality agreement does cover information related to its quality assurance programs. The FDD specifies that "quality assurance programs" are considered Confidential Information of the Franchisor. This means that franchisees are prohibited from divulging or using this information for their own benefit or for the benefit of any third party, both during and after the term of the franchise agreement.
Bonchon franchisees must treat all information related to the Bonchon System as confidential, including systems of operation, services, programs, products, procedures, policies, standards, techniques, specifications, and criteria. This extends to the Confidential Operating Manual, supplements, customer records, advertising methods, instructional materials, staff systems, supervision systems, recommended services, recordkeeping, bookkeeping, business forms, order forms, operations materials, revenue reports, design standards, schedules, job descriptions, and public relations materials.
The agreement also restricts franchisees from copying, duplicating, recording, or reproducing any confidential information, storing it in a computer database, or making it available to unauthorized persons. Upon termination of the agreement, all confidential information must be returned to Bonchon. This broad definition of confidential information ensures that Bonchon's proprietary knowledge and operational methods remain protected.
This type of confidentiality agreement is standard practice in franchising to protect the franchisor's brand and operational methods. Prospective Bonchon franchisees should carefully review the scope of the confidentiality agreement to understand their obligations and restrictions regarding the use and disclosure of confidential information.