Can a Bonchon franchisee operate their franchised business from more than one Restaurant Location within their Protected Territory?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ic protected territory (the "Protected Territory") within which you must operate your Bonchon Restaurant.
You may operate your franchised Business from only one Restaurant Location within your Protected Territory. "Restaurant Location" means a location you select and we approve, from which you conduct the Bonchon Business. Except in high-density population centers, your Protected Territory (which we will draw using our mapping system) will consist of the area inside a circle whose center lies at the Bonchon Restaurant Location and whose radius extends outward from the circle's center.
We approve or disapprove of the site for your Restaurant Location under pursuant to the terms and conditions set forth in the Franchise Agreement and in accordance with our then-current standards imposed in connection with same. The Protected Territory for your Bonchon Business depends on your market area, including population density, drive times, and similar factors. There is no set minimum or maximum Protected Territory. However, we do not anticipate (as a general rule) that the radius will ever be greater than 3 miles from the Bonchon Business or less than 0.25 miles. If your Bonchon Business will operate a Remote Kitchen Restaurant, your Protected Territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. Your Restaurant's specific Protected Territory will be somewhere in that range depending on your specific market and circumstances. For Restaurants located in high-density population centers, your Protected Area will be determined on a case-by-case basis. The Restaurant Location and Protected Territory will be designated in Exhibit A to your Franchise Agreement.
You may not relocate the Restaurant without our previous written approval. You must pay us a Relocation Fee equal to 25% of our then-current Initial Franchise Fee, plus reimburse us for any reasonable costs we incur in considering your request, provided, however, you will not have to pay us a Relocation Fee or reimburse us for our costs in considering your request to relocate a Remote Kitchen Restaurant when such relocation occurs upon the natural expiration of the lease for your Restaurant Location. For the avoidance of doubt, you will be required to pay us a Relocation Fee and reimburse us for our costs in considering your request to relocate your Remote Kitchen Restaurant Location, if the lease for your Restaurant Location is terminated due to your default. We will grant approval if you are in compliance with the Franchise Agreement, you have paid all money owed to us and our affiliates, the proposed location meets our site selection criteria, and you comply with the lease requirements in the Franchise Agreement. We may, if we wish, inspect your proposed new location.
Your Bonchon Business may only offer and sell its products and services from your Bonchon Restaurant at the Restaurant Location situated within your designated Protected Territory. Your Bonchon Business will be prohibited from directly delivering products to customers; rather, it will be required to utilize a third-party delivery service that we have designed and/or approved in advance in order to fulfill online delivery orders. Your Business may not sell any products or services through any alternative channels of distribution, such as the internet/worldwide web and other forms of electronic commerce; "800" or similar toll-free telephone numbers; supermarkets, grocery stores or convenience stores; mail orders; catalogs; telemarketing or other direct marketing sales; or, any other channel of distribution except for your franchised Bonchon Restaurant at the Restaurant Location situated within your Protected Territory.
While the Franchise Agreement is in effect, we and our affiliates will not, in your Protected Territory, operate a company-owned Bonchon Business, or grant a franchise for a Bonchon Business, except as described below.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee is restricted to operating their Bonchon business from a single, approved Restaurant Location within their Protected Territory. The Restaurant Location is the specific site that Bonchon approves, and it is from this location that the franchisee conducts the Bonchon business.
This means that a franchisee cannot operate multiple Bonchon restaurants or service points within the same Protected Territory under a single franchise agreement. The Protected Territory itself is defined based on factors like population density and drive times, typically ranging from 0.25 to 3 miles in radius from the Restaurant Location, although this can vary, especially in high-density areas or for Remote Kitchen Restaurants (which have a maximum radius of one-tenth of a mile). The specific Restaurant Location and Protected Territory details are documented in Exhibit A of the Franchise Agreement.
Bonchon also requires franchisees to use approved third-party delivery services for online orders, further emphasizing the focus on a single physical location for operations. Franchisees are also prohibited from selling Bonchon products through alternative channels of distribution (like the internet, supermarkets or catalogs) except from their designated Restaurant Location. This reinforces the concept of a defined, location-specific business operation within the Protected Territory.
Relocating the Bonchon restaurant is possible, but it requires Bonchon's written approval, payment of a Relocation Fee (25% of the then-current Initial Franchise Fee), and reimbursement of Bonchon's costs for considering the relocation request. These conditions ensure that any move is carefully controlled and meets Bonchon's standards, further highlighting the importance of the initially approved Restaurant Location.