What is the general method for determining the Protected Territory for a Bonchon Restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
will conduct during our pre-opening on-site training.
ITEM 12 TERRITORY
Franchise Agreement
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We will grant you a designated location (the "Restaurant Location") in a specific 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.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee will operate their Bonchon Restaurant within a specific protected territory. Except in high-density population centers, the Protected Territory is generally defined as the area inside a circle centered at the Bonchon Restaurant location, extending outward by a certain radius. The specific radius depends on factors such as market area, population density, and drive times.
Bonchon does not specify a set minimum or maximum Protected Territory size, but they anticipate that the radius will generally not be greater than 3 miles or less than 0.25 miles from the Bonchon Business. However, if the Bonchon Business is a Remote Kitchen Restaurant, the Protected Territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. For Restaurants located in high-density population centers, the Protected Territory will be determined on a case-by-case basis. The Restaurant Location and Protected Territory will be designated in Exhibit A to the Franchise Agreement.
It's important to note that Bonchon and its affiliates retain the right to operate Bonchon Businesses or authorize others to do so at locations near or adjacent to the franchisee's Protected Territory. They also reserve the right to sell products and services through alternative distribution channels, such as the internet, supermarkets, and other venues, without compensating the franchisee. This means that while franchisees have a Protected Territory for their physical restaurant, Bonchon can still compete in the same area through other means.