Is a Bonchon franchisee allowed to represent that they have acquired any ownership, goodwill, reputation, or equitable rights in any of Bonchon's Proprietary Marks?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You expressly understand and agree that you are bound not to represent in any manner that you have acquired, and you will not asset any claim to, any ownership, goodwill, reputation or equitable rights in any our Proprietary Marks by virtue of the limited license granted under this Agreement, by virtue of your use of any of the Proprietary Marks or otherwise. All of your uses of the Proprietary Marks, whether as a trademark, service mark, trade name or trade style, will inure to our benefit. Following the expiration or termination of this Agreement, no monetary amount will be attributable to any goodwill associated with your use of the Proprietary Marks or operation of the franchised Business or your Bonchon Restaurant including any "local goodwill", which, you expressly agree, exclusively vests in us.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are expressly prohibited from representing that they have acquired any ownership, goodwill, reputation, or equitable rights in Bonchon's Proprietary Marks. The agreement specifies that the franchisee's license to use the Proprietary Marks is limited and does not grant any ownership rights. All usage of the Proprietary Marks, whether as a trademark, service mark, trade name, or trade style, benefits Bonchon.
This limitation means that franchisees cannot claim any rights to the brand's identity or reputation beyond the scope of the franchise agreement. Bonchon retains full control over its Proprietary Marks, ensuring consistent branding and quality standards across all franchise locations. This protects the brand's value and reputation, as Bonchon maintains exclusive rights to its trademarks and associated goodwill.
Upon termination or expiration of the franchise agreement, the franchisee's right to use the Proprietary Marks ceases, and any goodwill associated with the franchisee's operation, including local goodwill, vests exclusively in Bonchon. This provision reinforces Bonchon's ownership of its brand and prevents franchisees from leveraging the brand's reputation for their own benefit after the agreement ends. Franchisees must acknowledge and agree to these terms, ensuring they understand the limitations on their use of the Proprietary Marks and the exclusive ownership rights retained by Bonchon.