Does the Bonchon confidentiality agreement prevent me from diverting business to competitors of the Area Developer and/or Franchisor?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
I agree that during the term of my employment by, ownership participation in, association with or service to Area Developer, or at any time thereafter, I will not communicate, divulge or use for the benefit of any other person, persons, partnership, proprietorship, association, corporation or entity any confidential information, knowledge or know-how concerning the systems of operation, services, products, clients or practices of Area Developer and/or Franchisor which may be communicated to me ("Confidential Information"), and I will not divert any business to competitors of Area Developer and/or Franchisor.
Any and all information, knowledge, know-how, techniques and information which the entities mentioned above or their officers designate as confidential will be Confidential Information for the purposes of this Agreement, except information which I can demonstrate came to my attention before disclosure or which had become or becomes a part of the public domain through publication or communication by others (unless the publication or communication is in violation of a similar confidentiality agreement), but in no event through any act of mine.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the confidentiality agreement explicitly prohibits diverting business to competitors of the Area Developer and/or Franchisor. This restriction applies during the term of employment, ownership participation, association, or service to the Area Developer, and continues indefinitely thereafter.
The agreement states that franchisees cannot communicate, divulge, or use confidential information for the benefit of any other entity, including competitors. Confidential information includes knowledge and know-how concerning the systems of operation, services, products, clients, or practices of the Area Developer and/or Franchisor. This broad definition means franchisees must be extremely careful about sharing any information that could potentially benefit a competitor, even inadvertently.
This clause aims to protect Bonchon's competitive advantage by preventing franchisees or their associates from using inside knowledge to aid rival businesses. The agreement specifies that any information designated as confidential by Bonchon or its officers is considered Confidential Information unless it was already public knowledge or known to the franchisee before disclosure, and not made public by the franchisee. This places a significant responsibility on the franchisee to safeguard Bonchon's proprietary information and avoid any actions that could be construed as diverting business to competitors.