Does the Bonchon confidentiality agreement extend beyond the term of my association?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to use and permit the use of our Confidential Information (as defined below) solely in connection with the operation of your franchised Bonchon Business. You further agree that you will never – during the Initial Term or any Successor Term of this Agreement, or any time after this or any Successor Agreement expires or terminates, or your rights under this Agreement or any Successor Agreement are assigned or terminated – divulge or use any of our Confidential Information for the benefit of yourself, your owners (if you are a business entity) any third party (including any person, business entity or enterprise of any type or nature), nor will you directly or indirectly aid any such third party to imitate, duplicate or "reverse engineer" any of our Confidential Information.
"Confidential Information" includes (without limitation) all information, knowledge, trade secrets or know-how utilized or embraced by the Bonchon System or which otherwise concerns your or our systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases or software. Confidential Information includes (without limitation): all elements of the Bonchon System and all products, services, equipment, technologies, recipes, food and beverage preparation techniques, policies, standards, requirements, criteria and procedures that now or in the future are a part of the Bonchon System; our Manuals (including Supplements to the Manuals); all specifications, sources of supply, all procedures, systems, techniques and activities employed by us or by you in the offer and sale of products and/or services at or from your franchised Bonchon Business; all pricing paradigms established by us or by you; all of our and/or your sources (or prospective sources) of supply and all information pertaining to same (including wholesale pricing structures, the contents of sourcing agreements and the identity of
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the confidentiality agreement extends beyond the term of the franchise agreement. Franchisees are restricted from divulging or using confidential information, both during the term of the agreement and at any time after the agreement expires or terminates. This obligation extends to preventing third parties from imitating, duplicating, or reverse engineering Bonchon's confidential information. This ensures the protection of Bonchon's trade secrets and operational methods.
"Confidential Information" includes all information, knowledge, trade secrets, or know-how utilized by the Bonchon System, concerning the franchisee's or Bonchon's systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases, or software. This covers all elements of the Bonchon System, including products, services, equipment, technologies, recipes, food and beverage preparation techniques, policies, standards, requirements, criteria, and procedures. It also includes manuals, specifications, sources of supply, procedures, systems, techniques, activities, pricing paradigms, and information pertaining to sources of supply.
This extended confidentiality obligation is common in franchising to protect the franchisor's proprietary information and maintain a competitive advantage. Prospective Bonchon franchisees should understand that this obligation continues even after they are no longer part of the Bonchon franchise system. This means that even after leaving the system, franchisees cannot use Bonchon's confidential information for their own benefit or the benefit of others.