What is the general shape of the Protected Territory granted to a Bonchon franchisee, and how is it determined?
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, franchisees do not receive an exclusive territory. Instead, Bonchon grants a designated location (the Restaurant Location) within a specific protected territory. Except in high-density population centers, the Protected Territory is generally shaped like a circle, with the Bonchon Restaurant Location at the center and a radius extending outward.
The size and specific shape of the Protected Territory depend on factors such as the market area, population density, and drive times. While there is no set minimum or maximum size, Bonchon anticipates that the radius will generally be between 0.25 miles and 3 miles from the Bonchon Business. However, for Remote Kitchen Restaurants, 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 Area 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 is important to note that Bonchon retains the right to sell to national, regional, and institutional accounts both within and outside the Protected Territory. Additionally, Bonchon can operate or authorize others to operate businesses that do not sell under the Bonchon Proprietary Marks, even within the franchisee's Protected Territory. These factors could impact a franchisee's potential customer base and revenue.