From what geographic area does Bonchon derive its revenues?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
lishment of Bonchon Businesses, kiosks, mobile units, concessions or "shop in shops", and that, by contrast, you are precluded from engaging in such activity. "Nontraditional Locations" includes sports arenas and venues; theatres; resorts; food retailers (including supermarkets, grocery stores and convenience stores); malls; schools and universities; hospital and healthcare facilities; airports; guest lodging facilities; day care facilities of any type; government facilities; condominium and cooperative complexes; the premises of any third party retailer which is not a Bonchon Business (including shops, stores and department stores); military bases and installations; airlines, railroads and other modes of mass transportation; and, any other location or venue to which access to the general public is restricted. You will receive no compensation for our or our affiliates' sales at Nontraditional Locations.
You further agree that, both within and outside the Development Territory, we and/or our affiliates alone have the right to sell Bonchon System products and services to national, regional and
institutional accounts. "National, Regional and Institutional Accounts" are organizational or institutional customers whose presence is not confined to your Development Territory, including (by way of example only): business entities with offices or branches situated both inside and outside of your Development Territory; government agencies, branches or facilities; guest lodging networks; healthcare networks; the military; and, any other customer whose presence is not confined to your Development Territory. Only we will have the right to enter into contracts with National, Regional and Institutional Accounts (which may include facilities within your Development Territory). If we receive orders for any Bonchon products or services calling for delivery or performance in your Development Territory as a result of our engaging in commerce with National, Regional and Institutional Accounts, and you have opened one or more Bonchon Businesses in the customer's geographic area, then we will have the right, but not the obligation, to give you the opportunity to fulfill one or more such orders at the price we agree on with the customer.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon and its affiliates have the right to sell products and services to national, regional, and institutional accounts both within and outside a franchisee's development territory. These accounts are organizational customers not confined to a specific territory, such as businesses with multiple locations, government agencies, lodging networks, healthcare networks, and the military.
Bonchon retains the right to contract with these national, regional, and institutional accounts, even if they include facilities within a franchisee's territory. If Bonchon receives orders for delivery or performance within a franchisee's area, they may offer the franchisee the opportunity to fulfill the order at an agreed price, assuming the franchisee has an open Bonchon restaurant in that area. However, Bonchon is not obligated to do so.
If the franchisee cannot or does not want to serve the customer, or if the customer prefers to deal directly with Bonchon or another franchisee, Bonchon or another franchisee may serve the customer within the franchisee's territory without any compensation to the original franchisee. The FDD specifies that the franchise agreement does not confer marketing exclusivity in the development territory, allowing all Bonchon businesses to solicit and service customers regardless of geographic location.