After the Bonchon franchise agreement expires or terminates, are there any restrictions on divulging Confidential Information?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to use and permit the use of our Confidential Information (as defined below) solely in connection with the operation of your franchised Bonchon Business. You further agree that you will never – during the Initial Term or any Successor Term of this Agreement, or any time after this or any Successor Agreement expires or terminates, or your rights under this Agreement or any Successor Agreement are assigned or terminated – divulge or use any of our Confidential Information for the benefit of yourself, your owners (if you are a business entity) any third party (including any person, business entity or enterprise of any type or nature), nor will you directly or indirectly aid any such third party to imitate, duplicate or "reverse engineer" any of our Confidential Information.
"Confidential Information" includes (without limitation) all information, knowledge, trade secrets or know-how utilized or embraced by the Bonchon System or which otherwise concerns your or our systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases or software. Confidential Information includes (without limitation): all elements of the Bonchon System and all products, services, equipment, technologies, recipes, food and beverage preparation techniques, policies, standards, requirements, criteria and procedures that now or in the future are a part of the Bonchon System; our Manuals (including Supplements to the Manuals); all specifications, sources of supply, all procedures, systems, techniques and activities employed by us or by you in the offer and sale of products and/or services at or from your franchised Bonchon Business; all pricing paradigms established by us or by you; all of our and/or your sources (or prospective sources) of supply and all information pertaining to same (including wholesale pricing structures, the contents of sourcing agreements and the identity of
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are restricted from divulging Confidential Information even after the franchise agreement expires or terminates. Bonchon defines "Confidential Information" as all information, knowledge, trade secrets, or know-how utilized by the Bonchon System, concerning the systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases, or software. This includes all elements of the Bonchon System, such as products, services, equipment, technologies, recipes, food and beverage preparation techniques, policies, standards, requirements, criteria, and procedures.
This restriction extends to preventing franchisees from using Confidential Information for their own benefit, the benefit of their owners (if the franchisee is a business entity), or any third party. Franchisees are also prohibited from aiding any third party in imitating, duplicating, or reverse engineering Bonchon's Confidential Information. This obligation remains in effect during the Initial Term, any Successor Term, and at any time after the agreement expires or terminates.
Furthermore, the termination or expiration of the Franchise Agreement does not relieve the franchisee of their obligations of confidentiality, protection, and security with respect to the Bonchon Software. Upon termination or expiration, the franchisee must immediately return the Bonchon Software and any off-line copies of proprietary data to Bonchon. This includes all computer software and data stored on memory drives, online, or via other storage media.
These stipulations are typical in franchise agreements to protect the franchisor's proprietary information and maintain the integrity of the brand. Prospective Bonchon franchisees should understand that these confidentiality obligations are perpetual and extend beyond the term of the franchise agreement.