After the Bonchon Franchise Agreement terminates, what are the restrictions on using 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 face strict and perpetual restrictions on the use of confidential information, even after the franchise agreement terminates. Franchisees agree not to divulge or use any of Bonchon's confidential information for their own benefit, the benefit of their owners (if the franchisee is a business entity), or any third party. This restriction applies during the initial term, any successor term, and at any time after the agreement expires or terminates. Franchisees are also prohibited from aiding any third party in imitating, duplicating, or reverse engineering Bonchon's confidential information.
Confidential information is broadly defined to include all information, knowledge, trade secrets, and know-how utilized by the Bonchon System. This encompasses systems of operation, programs, services, products, customer data, practices, materials, books, records, manuals, computer files, databases, and software. It also 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. The definition extends to Bonchon's manuals, specifications, sources of supply, procedures, systems, techniques, activities, pricing paradigms, and information pertaining to suppliers.
Upon termination of the Franchise Agreement, Bonchon franchisees must also adhere to specific obligations regarding confidential information. They must return all training manuals, confidential information, computer software, customer lists, records, files, documents, and any materials bearing Bonchon's proprietary marks. Franchisees are prohibited from retaining any copies of these items, except for their copy of the Franchise Agreement, correspondence between the parties, and documents needed for legal compliance. Furthermore, franchisees must continue to abide by the restrictions on using Bonchon's confidential information, trade secrets, and know-how, as outlined in the agreement.
These restrictions are designed to protect Bonchon's proprietary information and maintain the integrity of the Bonchon system. Prospective franchisees should carefully consider these post-termination obligations and understand the breadth of information considered confidential, as violations could result in legal action from Bonchon.