Does Bonchon continue to offer franchises in the same area as an existing Bonchon Restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ou acknowledge and expressly agree that should there be a conflict between the written description and the map, the written description will control.
3.02 Our Restrictions
Within the Protected Territory, neither we nor any affiliate (as defined in Section 3.04 below) will operate or grant a franchise for a Bonchon Business operated under the Proprietary Marks of the type franchised to you hereunder, except as provided in Section 3.04 ("Rights We Reserve"). These restrictions will terminate immediately upon the expiration or termination of this Agreement for any reasons.
Outside of the Protected Territory, we and/or our affiliates reserve the right to operate any number of Bonchon Businesses and Restaurants, and/or authorize others to operate same, at any location whatsoever, including one or more locations that may be proximate to, adjacent to or abutting the boundary of the Protected Territory.
3.03 Your Restrictions
Your Bonchon Business may only offer and sell its products and services in, at and from your Bonchon Restaurant at the Restaurant Location situated within the Protected Territory. Under no circumstance may your Business establish any physical presence outside of your Protected Territory at or from which your products or services are sold or furnished. Nor may your Business offer or sell any products or services anywhere, through any means or manner other than your Restaurant, including alternative channels of distribution, such as the internet/worldwide web and other forms of electronic commerce; "800" or similar toll-free telephone numbers (other than those we establish and make available to you for your customers to place orders with your franchised Restaurant); supermarkets, grocery stores or convenience stores; mail orders; catalogs; telemarketing or other direct marketing sales; or, any other channel of distribution whatsoever except for your franchised
Bonchon Restaurant at the Restaurant Location situated in the Protected Territory.
You may only engage in the retail sale of Bonchon System products and services. You are prohibited from engaging in the wholesale sale or distribution of any Bonchon System products or services, or the products, equipment, and services which your Bonchon Business is required or permitted to use or sell under this Agreement, or any component or ingredient of any of the foregoing which now or in the future constitutes part of the Bonchon System. Retail sale" means any sale by you directly to an ultimate consumer. "Wholesale sale or distribution" means any sale or distribution by you to a third party for resale, retail sale, or further distribution. "Component" means any constituent part, ingredient, element, segment or derivative.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon grants franchisees a protected territory. Within this protected territory, Bonchon and its affiliates will not operate or grant a franchise for a Bonchon Business under the same Proprietary Marks. This restriction remains in effect as long as the Franchise Agreement is active but terminates immediately upon expiration or termination of the agreement for any reason.
However, outside the protected territory, Bonchon and its affiliates reserve the right to operate any number of Bonchon Businesses and Restaurants, and/or authorize others to do so, at any location, including locations near or adjacent to the boundary of the franchisee's protected territory. This means that while a franchisee has some assurance of exclusivity within their defined area, Bonchon retains the right to expand and franchise outside of it, even if it is in close proximity.
Bonchon also has the right to develop and operate additional Bonchon Businesses in a specific city within the Development Territory once the franchisee has developed and commenced operations of the specified number of Bonchon Businesses for that geographic trade area. For example, if the Development Territory includes City A, City B and City C and Bonchon grants the franchisee the right to develop two Bonchon Businesses in each city, then the right to develop Bonchon Businesses in City A will cease once the franchisee has developed and commenced operations of two Bonchon Businesses. Accordingly, Bonchon will have the right to develop and operate or grant a third party the right to develop and operate additional Bonchon Businesses in City A, even if the franchisee has not fully satisfied its development obligations in City B and City C.