Where is the Bonchon Development Territory defined in the Area Development Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Development Territory will be set forth on Exhibit A to your Area Development Agreement. The Development Territory includes the Protected Territories granted under the Franchise Agreement for each Bonchon Business that you develop. Each "Protected Territory" is restricted to a geographic area within which you agree to establish and operate a Bonchon Restaurant under a Franchise Agreement. Except in high-density population centers, a Restaurant's Protected Territory consists of the area inside a circle whose center lies at the Bonchon Restaurant Location and whose radius extends outward from the circle's center. 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 be 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 Territory will be determined on a case-by-case basis. Your right to operate a franchised Bonchon Business developed under an Area Development Agreement will be limited to the Bonchon Business' Restaurant Location situated in the respective Protected Territory located in the Development Territory. We do not approve or disapprove of the site for your first Restaurant Location under the Area Development Agreement, we do this under, and pursuant to the terms and conditions set forth in, the unit Franchise Agreement and in accordance with our then-current standards imposed in connection with same. However, we do approve and disapprove the sites for your subsequent Restaurant Locations pursuant to the terms and conditions set forth in, the Area Development Agreement and in accordance with our then-current standards imposed in connection with same.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Development Territory granted in the Area Development Agreement is defined in Exhibit A of the agreement. Bonchon grants the developer a Development Territory where they can develop, own, and operate franchised Bonchon Businesses. It is important to note that this territory is not exclusive, meaning the franchisee may face competition from other outlets owned by Bonchon, nontraditional locations, other distribution channels, or competitive brands controlled by Bonchon.
The Development Territory includes Protected Territories granted under the Franchise Agreement for each Bonchon Business developed. These Protected Territories are geographic areas within which the franchisee agrees to establish and operate a Bonchon Restaurant. Except in high-density population centers, a Restaurant's Protected Territory consists of the area inside a circle whose center lies at the Bonchon Restaurant Location and whose radius extends outward from the circle's center.
The radius of the Protected Territory depends on market area factors such as population density and drive times. While there is no set minimum or maximum Protected Territory, Bonchon does not anticipate the radius being greater than 3 miles or less than 0.25 miles, unless the Bonchon Business is a Remote Kitchen Restaurant, in which case the Protected Territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. For Restaurants located in high-density population centers, the Protected Territory will be determined on a case-by-case basis. Bonchon approves or disapproves the sites for subsequent Restaurant Locations pursuant to the terms and conditions set forth in, the Area Development Agreement and in accordance with their then-current standards imposed in connection with same.