How does Bonchon determine the Protected Territory for a Bonchon Restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
will conduct during our pre-opening on-site training.
ITEM 12 TERRITORY
Franchise Agreement
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We will grant you a designated location (the "Restaurant Location") in a specific protected territory (the "Protected Territory") within which you must operate your Bonchon Restaurant.
You may operate your franchised Business from only one Restaurant Location within your Protected Territory. "Restaurant Location" means a location you select and we approve, from which you conduct the Bonchon Business. Except in high-density population centers, your Protected Territory (which we will draw using our mapping system) will consist of the area inside a circle whose center lies at the Bonchon Restaurant Location and whose radius extends outward from the circle's center.
We approve or disapprove of the site for your Restaurant Location under pursuant to the terms and conditions set forth in the Franchise Agreement and in accordance with our then-current standards imposed in connection with same. The Protected Territory for your Bonchon Business depends on your market area, including population density, drive times, and similar factors. There is no set minimum or maximum Protected Territory. However, we do not anticipate (as a general rule) that the radius will ever be greater than 3 miles from the Bonchon Business or less than 0.25 miles. If your Bonchon Business will operate a Remote Kitchen Restaurant, your Protected Territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. Your Restaurant's specific Protected Territory will be somewhere in that range depending on your specific market and circumstances. For Restaurants located in high-density population centers, your Protected Area will be determined on a case-by-case basis. The Restaurant Location and Protected Territory will be designated in Exhibit A to your Franchise Agreement.
You may not relocate the Restaurant without our previous written approval. You must pay us a Relocation Fee equal to 25% of our then-current Initial Franchise Fee, plus reimburse us for any reasonable costs we incur in considering your request, provided, however, you will not have to pay us a Relocation Fee or reimburse us for our costs in considering your request to relocate a Remote Kitchen Restaurant when such relocation occurs upon the natural expiration of the lease for your Restaurant Location.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Protected Territory for a Bonchon Restaurant depends on several factors related to the market area. These factors include population density and drive times. Bonchon does not have a set minimum or maximum size for a Protected Territory.
Generally, for restaurants that are not in high-density population centers, the Protected Territory is a circle centered on the Bonchon Restaurant Location, extending outward. Bonchon anticipates that the radius of this circle will typically be between 0.25 miles and 3 miles. However, for Remote Kitchen Restaurants, the Protected Territory is much smaller, with a radius of no greater than one-tenth (0.1) mile. The specific size of the Protected Territory for a Bonchon Restaurant will depend on the specific market and circumstances.
For Bonchon Restaurants located in high-density population centers, the Protected Territory is determined on a case-by-case basis. The Restaurant Location and Protected Territory will be designated in Exhibit A to the Franchise Agreement. While the Franchise Agreement is in effect, Bonchon and its affiliates will not operate a company-owned Bonchon Business or grant a franchise for a Bonchon Business within the franchisee's Protected Territory, with some exceptions. Bonchon and its affiliates can operate any number of Bonchon Businesses at any location, including locations that may be proximate to, adjacent to or abutting the boundary of the franchisee's Protected Territory.