What constitutes a default related to the use of Proprietary Marks for a Bonchon franchisee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
inure to our benefit. Following the expiration or termination of this Agreement, no monetary amount will be attributable to any goodwill associated with your use of the Proprietary Marks or operation of the franchised Business or your Bonchon Restaurant including any "local goodwill", which, you expressly agree, exclusively vests in us.
15.03 Use and Display of Proprietary Marks
A. You must not use, and must not permit or cause another to use, the Proprietary Marks except in the manner and to the extent specifically licensed to you under this Agreement. You agree that each use you make of any Proprietary Mark will accurately portray the Mark and that the Mark will not be used or portrayed in a manner which jeopardizes the goodwill associated with the Mark or the Bonchon System. You agree to use the Proprietary Marks in full compliance with rules we
prescribe from time to time in our Manuals or otherwise. You are prohibited (except as expressly provided in this Agreement) from using any Proprietary Mark with any prefix, suffix, or other modifying words, terms, designs or symbols (other than logos licensed by us to you). You may not use any Proprietary Mark in connection with the sale of any unauthorized service, product or program or in any other manner not explicitly authorized in writing by us. You may use the Proprietary Marks only for the operation of the franchised Business or in advertising for the franchised Business. Your right to use the Proprietary Marks is limited to the uses authorized under this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, several actions can lead to a franchisee being in default regarding the use of Bonchon's Proprietary Marks. These include using the marks in any way not specifically licensed in the agreement, failing to accurately portray the marks, or using them in a way that jeopardizes the goodwill associated with the marks or the Bonchon System. Franchisees must adhere to the rules prescribed in Bonchon's manuals regarding the use of Proprietary Marks.
Specifically, a franchisee cannot use any Proprietary Mark with unauthorized prefixes, suffixes, or modifying elements, except for logos licensed by Bonchon. They are also prohibited from using the marks in connection with the sale of any unauthorized service, product, or program, or in any manner not explicitly authorized in writing by Bonchon. The right to use the Proprietary Marks is strictly limited to the operation and advertising of the franchised Bonchon Business.
Any unauthorized use of Bonchon's Proprietary Marks constitutes an infringement of Bonchon's rights and a material and incurable breach of the Franchise Agreement. Unless Bonchon waives the breach, this entitles Bonchon to terminate the agreement immediately upon notice, without any opportunity for the franchisee to cure the default. This underscores the importance of a franchisee's strict adherence to the guidelines and restrictions set forth by Bonchon regarding the use of its Proprietary Marks.