What are the consequences of violating the Bonchon confidentiality agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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- You do not comply with the covenant not to compete during the term of this Agreement; violate the restrictions pertaining to the use of Confidential Information contained in this Agreement; or, do not obtain the execution of the additional covenants required in Article 11 of this Agreement.
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You do not comply with the covenant not to compete during the term of this Franchise Agreement; violate the restrictions pertaining to the use of Confidential Information contained in this Agreement; or, do not obtain the execution of the additional covenants required by this Agreement.
You may not use, in any manner or for any purpose, directly or indirectly, any of our Confidential Information, trade secrets, procedures, forms, techniques, know-how or materials acquired by you by virtue of the relationship established by this Agreement.
The termination or expiration of this Agreement or of the Franchise Agreement for any reason whatsoever will not relieve Licensee of its obligations of confidentiality, protection and security under this Agreement, or of the restriction on copying and use as provided in this Agreement, with respect to the Bonchon Software.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee's failure to comply with confidentiality restrictions outlined in the franchise agreement can lead to significant repercussions. Specifically, violating the restrictions pertaining to the use of confidential information constitutes grounds for termination of the Franchise Agreement. This means Bonchon has the right to terminate the agreement if a franchisee misuses or divulges confidential information.
Furthermore, upon termination or expiration of the agreement, the franchisee must cease using Bonchon's proprietary marks and the Bonchon System, and they are prohibited from operating under any name that might suggest an affiliation with Bonchon. The franchisee is also barred from using any of Bonchon's confidential information, trade secrets, procedures, or know-how acquired during the franchise relationship. They cannot present themselves as a current or former Bonchon franchisee.
Bonchon also states that the franchisee's obligations regarding confidentiality, protection, and security of the Bonchon software continue even after the termination or expiration of the Franchise Agreement. The franchisee must return or delete all copies of the Bonchon Software and any proprietary data, whether stored on memory drives, online, or via other storage media. These measures ensure that Bonchon's proprietary information remains protected, even after the franchise relationship ends.