Following termination or expiration of a Bonchon franchise agreement, is a franchisee allowed to contact Bonchon's customers, suppliers, employees, and vendors?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Immediately refrain from engaging in any contacts with customers, suppliers, employees and vendors of the Bonchon Business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, after the termination or expiration of the franchise agreement, a franchisee must immediately stop contacting customers, suppliers, employees, and vendors of the Bonchon business. This restriction is part of the obligations a franchisee agrees to upon entering the agreement.
This provision ensures that the franchisee does not leverage their past association with the Bonchon brand to unfairly compete or disrupt the established business relationships of the franchise system. It protects Bonchon's goodwill and proprietary information by preventing a former franchisee from using their knowledge of the system's network to their advantage.
For a prospective franchisee, this means understanding that upon exiting the Bonchon system, they will not be able to maintain or leverage any relationships they developed through the franchise. This could impact their future business endeavors, especially if they plan to remain in a related industry. It is a standard practice in franchising to include such non-contact provisions to safeguard the franchisor's business interests and maintain system uniformity.