Does the Bonchon Franchise Agreement include a Confidentiality/Non-Competition Agreement, and if so, where is it located?

According to Bonchon's 2025 Franchise Disclosure Document, the Franchise Agreement and Area Development Agreement require certain individuals to sign a Confidentiality/Non-Competition Agreement. This agreement is included as Exhibit E to the Franchise Agreement and Exhibit C to the Area Development Agreement. Alternatively, a Confidentiality Agreement (Exhibit F to the Franchise Agreement and Exhibit D to the Area Development Agreement) may be required, depending on the specific circumstances.

These agreements aim to protect Bonchon's confidential information and prevent unfair competition. The FDD specifies that during the Initial Term, any Successor Term, or even after the Franchise Agreement expires or is terminated, franchisees cannot reveal Bonchon's confidential information to anyone or use it for any other business. Franchisees are also prohibited from copying confidential information or providing it to third parties without authorization.

Furthermore, the franchise agreement includes restrictions on soliciting or hiring Bonchon's managerial personnel or those of its affiliates or other Bonchon franchises. It also restricts the sale, assignment, or lease of the restaurant to any entity intending to operate a competitive business at the location. These provisions extend not only to the franchisee but also to related individuals and entities, such as family members and business partners, ensuring a broad scope of protection for Bonchon's interests.

Prospective franchisees should carefully review Exhibits E and F of the Franchise Agreement, as well as Exhibits C and D of the Area Development Agreement, to fully understand the terms and implications of the Confidentiality/Non-Competition and Confidentiality Agreements. Understanding these obligations is crucial for anyone considering investing in a Bonchon franchise.