What is considered a violation of the Bonchon confidentiality agreement?
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, several actions can be considered a violation of the confidentiality agreement. Bonchon requires franchisees to use Confidential Information solely for the operation of their franchised Bonchon Business. Franchisees must not divulge or use any of Bonchon's Confidential Information for their own benefit, the benefit of their owners (if the franchisee is a business entity), or any third party. Additionally, franchisees are prohibited from aiding any third party in imitating, duplicating, or reverse engineering Bonchon's Confidential Information. These restrictions apply during the Initial Term, any Successor Term, and even after the agreement expires or terminates.
Confidential Information, as defined in the FDD, includes a wide array of proprietary assets and knowledge related to the Bonchon System. This encompasses all information, knowledge, trade secrets, and know-how utilized by the Bonchon System, including operational systems, programs, services, products, customer data, practices, materials, books, records, manuals, computer files, databases, and software. It also includes all elements of the Bonchon System, such as products, services, equipment, technologies, recipes, food and beverage preparation techniques, policies, standards, requirements, criteria, and procedures. The definition extends to Bonchon's Manuals, specifications, sources of supply, procedures, systems, techniques, activities, and pricing paradigms.
For a prospective Bonchon franchisee, this means that maintaining the confidentiality of Bonchon's proprietary information is of utmost importance. Any unauthorized use or disclosure of this information could lead to a breach of the franchise agreement, potentially resulting in termination and legal repercussions. Franchisees must ensure that their employees and any other parties with access to Confidential Information are also aware of and adhere to these confidentiality obligations. This includes safeguarding manuals, recipes, supplier information, and any other sensitive data related to the Bonchon System.
Furthermore, Bonchon emphasizes that franchisees cannot use Confidential Information for the benefit of any other business or entity, even after the franchise agreement ends. This restriction is designed to protect Bonchon's competitive advantage and prevent franchisees from leveraging their knowledge of the Bonchon System to create competing businesses or assist others in doing so. Franchisees should be aware of the broad scope of the definition of Confidential Information and take appropriate measures to protect it throughout the term of their franchise agreement and beyond.