If an individual employed by a Bonchon franchisee breaches the substantive provisions of the Confidentiality/Non-Competition Agreement but has not actually signed such an agreement, what action is the Bonchon franchisee required to take?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to vigorously and vigilantly prosecute to the fullest extent permitted by law breaches of any Confidentiality/Non-Competition Agreement executed by any of the individuals referenced in Section 12.05, and you acknowledge our right, to be exercised as we alone determine, to ourselves and enforce the terms of any such executed Confidentiality/Non-Competition Agreement. If the substantive provisions of our Confidentiality/Non-Competition Agreement have been breached by an individual employed, engaged or otherwise serving your franchised Bonchon Business who has not executed a Confidentiality/Non-Competition Agreement, you must nevertheless vigorously and vigilantly prosecute such conduct to the fullest extent permitted by law.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if an individual employed, engaged, or otherwise serving a franchised Bonchon business breaches the substantive provisions of the Confidentiality/Non-Competition Agreement, even without having signed the agreement, the franchisee is obligated to vigorously and vigilantly prosecute such conduct to the fullest extent permitted by law. This requirement underscores Bonchon's emphasis on protecting its confidential information and maintaining fair competition within its franchise system.
This obligation means that Bonchon franchisees must take active steps to address any breaches of the Confidentiality/Non-Competition Agreement, regardless of whether the individual involved formally signed the agreement. This could involve legal action, such as seeking an injunction to stop the offending behavior or pursuing damages to compensate for any losses suffered as a result of the breach. The franchisee's responsibility to prosecute such conduct highlights the importance of carefully monitoring employee behavior and taking swift action when potential breaches are identified.
For a prospective Bonchon franchisee, this requirement means understanding the scope of the Confidentiality/Non-Competition Agreement and implementing measures to prevent breaches. This may include providing training to employees on the importance of confidentiality and non-competition, as well as establishing clear policies and procedures for handling sensitive information. Franchisees should also consult with legal counsel to understand their obligations under applicable laws and to develop strategies for effectively prosecuting breaches of the agreement. Bonchon's proactive stance on enforcing these agreements demonstrates the brand's commitment to protecting its interests and maintaining a level playing field for all franchisees.