Is a Bonchon franchisee prohibited from soliciting or hiring managerial personnel from other Bonchon franchises or affiliates during the term of the agreement and for how long after?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
e to a competitor. Nothing in this Agreement will prevent you from owning for investment purposes only up to an aggregate of 5% of the capital stock of any Competitive Business you do not control, so long as the Competitive Business is a publicly held corporation whose stock is listed and traded on a national or regional stock exchange.
Further, during Initial Term or any Successor Term of this Agreement, and for two years following the termination or expiration of same for any reason, you agree not to: (i) solicit for employment or hire our managerial personnel, the managerial personnel of any of our affiliates or the managerial personnel of any other franchised Bonchon Business without first obtaining any written permission from us and the employer(s) of the personnel in question, or (ii) sell, assign, lease, sublease or otherwise grant possession of your Restaurant and/or Restaurant Location to any individual or entity which intends to utilize same to conduct a Competitive Business thereat (and it shall be your affirmative duty in connection with any such sale, assignment or other disposition of your Restaurant and/or Restaurant Location to secure a written memorialization from the purchaser, assignee, lessee, sublessee or permittee that it has no intent to conduct a Competitive Business, as herein defined, following the subject transaction).
It is the intention of these provisions that any person or entity within a legal or beneficial interest in or traceable to, down or through you be bound by the provisions of this covenant, including (without limitation) your spouse, brother, brother-in-law, sister, sister-in-law, parents, parents-in-law, child, son-in-law or daughter-in-law; any direct or indirect beneficiary of yours; and, any other related person or entity, regardless of how many levels or tiers there may be between you and the person or entity.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to the 2025 Bonchon Franchise Disclosure Document, Bonchon franchisees face restrictions on soliciting or hiring managerial personnel from Bonchon or its affiliates. During the Initial Term or any Successor Term of the Franchise Agreement, and for two years following the termination or expiration of the agreement, a franchisee is prohibited from soliciting for employment or hiring managerial personnel from Bonchon, its affiliates, or other franchised Bonchon businesses. This restriction requires the franchisee to first obtain written permission from Bonchon and the employer(s) of the personnel in question before making any solicitation or hiring decisions. This condition applies regardless of the reason for termination or expiration of the agreement.
This non-solicitation clause is designed to protect Bonchon and its franchisees from the loss of valuable personnel to other parts of the Bonchon system. It ensures that franchisees invest in their staff without the immediate risk of those employees being poached by other Bonchon locations. However, this restriction could limit a franchisee's ability to recruit experienced staff from within the Bonchon network, potentially hindering growth or operational improvements.
It is important to note that the California Addendum to the Franchise Agreement removes this "no-poach" clause for franchises offered and sold in California. This means that Bonchon franchisees in California do not face the same restrictions on soliciting or hiring managerial personnel from within the Bonchon system as franchisees in other states. Prospective franchisees should carefully review any state-specific addenda to understand how local laws may modify the standard franchise agreement.