After the Bonchon Franchise Agreement term, what are franchisees prohibited from doing that would infringe upon, harm, or contest Bonchon's rights in any of its Proprietary Marks?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ges we have suffered and will suffer as result of your uncured default or the premature termination of this Agreement, then we may (in lieu of seeking Liquidated Damages) seek actual Damages as defined in Section 18.01(5) below.
18. FURTHER OBLIGATIONS AND RIGHTS FOLLOWING THE TERMINATION OR EXPIRATION OF THIS AGREEMENT
18.01 Further Obligations and Rights Following The Termination or Expiration of this Agreement
If this Agreement expires or terminates for any reason or is assigned by you, you will cease to be an authorized Bonchon franchisee and you will lose all rights to the use of our Proprietary Marks, the Bonchon System, all Confidential Information and know-how owned by us and any goodwill (including "local" goodwill) engendered by the use of our Proprietary Marks and/or attributed to your conduct of the franchised Business.
Upon expiration or earlier termination of this Agreement for whatever reason, you agree to:
- Immediately pay all royalties, fees and other sums due and owing to us or our affiliates, plus interest, and all sums due and owing to any landlord, suppliers, employees, taxing authorities, advertising agencies, lenders and all other third parties.
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- Discontinue the use of the Proprietary Marks, and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a Bonchon Business, a Bonchon Restaurant or any similar business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to the 2025 Bonchon Franchise Disclosure Document, after the Franchise Agreement terminates or expires, franchisees must discontinue using Bonchon's Proprietary Marks and are prohibited from operating under any name or in any manner that might suggest to the public that they are still associated with Bonchon. Franchisees also cannot use any of Bonchon's confidential information, trade secrets, procedures, forms, techniques, know-how, or materials acquired during the franchise relationship.
Furthermore, franchisees are barred from identifying themselves as current or former Bonchon franchisees. They must also take action to cancel any assumed name registrations containing the "Bonchon" Proprietary Mark or any other Bonchon Proprietary Mark within 15 days of the agreement's termination or expiration.
These restrictions are typical in franchising to protect the brand's identity and goodwill. A prospective Bonchon franchisee should understand these post-termination obligations to avoid potential legal issues and ensure a clean break from the franchise system upon the agreement's conclusion.