What is the Bonchon franchisee's obligation regarding advertising materials that Bonchon furnishes to them?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Under this Agreement, the term "advertising" is defined to mean any and all advertising, identification and promotional materials and programs of any type or nature whatsoever including print and broadcast advertisements; direct mail materials; brochures; advertising specialties; electronic commerce communications and "bulletin boards"; any advertising on the internet/worldwide web; public relations and brand awareness programs; direct mail; door hangers; freestanding inserts and coupons; sponsorships; point of sale materials; press releases; business cards; displays; leaflets; telephone and computer greetings; messages and voice-mail/e-mail sent to or accessible by customers or other third parties; promotional material captured in any electronic medium; and, any other material or communication which we denominate as "advertising" in our Manuals or otherwise.
You agree to submit to us for approval, before use or dissemination, copies of all proposed advertising you intend to use (except for advertising which we furnish to you under this Agreement or advertising you have previously submitted and we have approved). Our approval of any of your proposed advertising may be withheld for any or no reason. If we do not respond within ten business days following our documented receipt of your proposed advertising material, then our approval will be deemed withheld and the proposed advertising material not approved. You may not use any advertising material approved by us if our approval took place more than 12 months prior to the proposed use. Our grant or denial of our approval of your proposed advertising will not give rise to any liability on our part and you will not assert claims against us to the contrary.
You agree to conduct all local advertising in accordance with the requirements and procedures set forth in our Manuals or otherwise, which may include restrictions on your ability to advertise your Restaurant to customers located proximate to other franchised or company-owned Bonchon Restaurants.
We may require you to, in any and all advertising, marketing and other promotional materials feature the fact that franchises for Bonchon Restaurants are available, such notice to be in the form, style and placement we designate. You must furnish any and all such advertising, marketing and other promotional materials to us, electronically or in such other form we designate, prior to your use, with the express understanding that we may be legally required to file same with various state regulatory
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees must submit all proposed advertising materials to Bonchon for approval before use or distribution. However, this requirement does not apply to advertising that Bonchon furnishes to the franchisee or advertising that Bonchon has previously approved. Bonchon may withhold approval of the franchisee's proposed advertising for any reason. If Bonchon does not respond within ten business days of receiving the franchisee's proposed advertising, the approval is considered withheld. Franchisees cannot use advertising material approved by Bonchon more than 12 months before the intended use. Bonchon assumes no liability for approving or denying advertising materials, and franchisees waive the right to make claims against Bonchon to the contrary.
Bonchon franchisees must conduct all local advertising according to the requirements and procedures outlined in Bonchon's manuals, which may include restrictions on advertising to customers near other Bonchon restaurants. Bonchon may also require franchisees to include a notice in their advertising, marketing, and promotional materials indicating that Bonchon franchises are available. Franchisees must provide these materials to Bonchon electronically or in another designated format before use, understanding that Bonchon may be legally required to file them with state regulatory agencies.
These stipulations mean that Bonchon maintains significant control over the brand's image and marketing strategies, ensuring consistency across all franchise locations. Franchisees need to be proactive in submitting advertising materials for approval and adhering to Bonchon's guidelines. The time frame for approval (ten business days) is important for franchisees to consider when planning their marketing campaigns. The franchisee bears the risk that advertising they propose may be rejected.