What happens to a Bonchon franchisee's rights to use Proprietary Marks and the Bonchon System upon termination or expiration of the Franchise Agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ges we have suffered and will suffer as result of your uncured default or the premature termination of this Agreement, then we may (in lieu of seeking Liquidated Damages) seek actual Damages as defined in Section 18.01(5) below.
18. FURTHER OBLIGATIONS AND RIGHTS FOLLOWING THE TERMINATION OR EXPIRATION OF THIS AGREEMENT
18.01 Further Obligations and Rights Following The Termination or Expiration of this Agreement
If this Agreement expires or terminates for any reason or is assigned by you, you will cease to be an authorized Bonchon franchisee and you will lose all rights to the use of our Proprietary Marks, the Bonchon System, all Confidential Information and know-how owned by us and any goodwill (including "local" goodwill) engendered by the use of our Proprietary Marks and/or attributed to your conduct of the franchised Business.
Upon expiration or earlier termination of this Agreement for whatever reason, you agree to:
- Immediately pay all royalties, fees and other sums due and owing to us or our affiliates, plus interest, and all sums due and owing to any landlord, suppliers, employees, taxing authorities, advertising agencies, lenders and all other third parties.
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- Discontinue the use of the Proprietary Marks, and not operate or do business under any name or in any manner which might tend to give the general public the impression that you are operating a Bonchon Business, a Bonchon Restaurant or any similar business. You may not use, in any manner or for any purpose, directly or indirectly, any of our Confidential Information, trade secrets, procedures, forms, techniques, know-how or materials acquired by you by virtue of the relationship established by this Agreement. You may never identify yourself to the public in any fashion whatsoever as a current or former Bonchon franchisee.
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Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if the Franchise Agreement expires or terminates for any reason, the franchisee will lose all rights to use Bonchon's Proprietary Marks, the Bonchon System, all Confidential Information and know-how owned by Bonchon, and any goodwill engendered by the use of Bonchon's Proprietary Marks.
Specifically, the franchisee must discontinue the use of the Proprietary Marks and not operate under any name or manner that might give the impression that they are operating a Bonchon Business or Restaurant. The franchisee is prohibited from using any of Bonchon's Confidential Information, trade secrets, procedures, forms, techniques, know-how, or materials acquired during the franchise relationship. They also cannot identify themselves as a current or former Bonchon franchisee.
Furthermore, the franchisee must take action to cancel any assumed name or equivalent registration that contains the Proprietary Mark "Bonchon" or any other Proprietary Mark of Bonchon within fifteen days following termination or expiration of the Agreement. If the franchisee fails to do so, Bonchon may execute the necessary documents on the franchisee's behalf and at the franchisee's expense. This ensures that the franchisee completely ceases using Bonchon's brand identity after the agreement ends.