For Bonchon, when must a franchisee furnish copies of executed Confidentiality/Non-Competition Agreements to the franchisor?
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, a franchisee is required to obtain and furnish copies of executed Confidentiality/Non-Competition Agreements to Bonchon within specific timeframes. These agreements must be secured from the Operating Principal (if they have an ownership interest), owners, equity holders, control persons, shareholders, members, partners, general partners, officers, directors, managers, and individuals in equivalent positions within entities that directly or indirectly own or control the franchisee.
The franchisee must procure these agreements no later than ten days following the Effective Date of the franchise agreement. If any individual or entity attains a relevant status after the Effective Date, the agreement must be procured within ten days of them attaining that status. Furthermore, the franchisee must furnish copies of all executed Confidentiality/Non-Competition Agreements to Bonchon within ten days following their execution.
This requirement ensures that Bonchon protects its confidential information and trade secrets by mandating that all key individuals associated with the franchise are bound by non-competition and confidentiality obligations. The strict deadlines emphasize the importance Bonchon places on these protections and the need for franchisees to act promptly in securing and submitting these agreements. Failure to comply with these requirements could result in breaches of the franchise agreement.