For a Bonchon franchise, who is required to procure Confidentiality/Non-Competition Agreements if the franchisee is a business entity?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to require and obtain the execution of our Confidentiality/Non-Competition Agreement (Exhibit E) from all of the following persons:
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- Before employment or any promotion of your Operating Principal (if such individual has an ownership interest in you); and,
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- If you are a business entity, and as applicable, all of your owners, equity holders, control persons, shareholders, members, partners and general partner(s); all of your officers, directors and managers; and, all persons possessing equivalent positions in any business entity which directly or indirectly owns and/or controls you. You shall procure all such Confidentiality/Non-Competition Agreements no later than ten days following the Effective Date (or, if any individual or entity attains any status identified above after the Effective Date, within ten days following such individual or entity's attaining such status) and shall furnish to us copies of all executed Confidentiality/Non-Competition Agreements within ten days following their execution.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if the franchisee is a business entity, Bonchon requires that Confidentiality/Non-Competition Agreements be obtained from several parties. These include all owners, equity holders, control persons, shareholders, members, partners, and general partners of the business entity.
Additionally, all officers, directors, and managers of the business entity must also execute these agreements. This requirement extends to individuals holding equivalent positions in any other business entity that directly or indirectly owns or controls the franchisee.
Bonchon mandates that these agreements be procured no later than ten days following the Effective Date of the franchise agreement. If an individual or entity attains any of the aforementioned statuses after the Effective Date, the agreement must be procured within ten days of them attaining that status. Copies of all executed Confidentiality/Non-Competition Agreements must be furnished to Bonchon within ten days following their execution.
This ensures that all individuals with significant control or ownership in the Bonchon franchise are bound by confidentiality and non-competition obligations, protecting Bonchon's interests and trade secrets.