What is the maximum radius of the Protected Territory for a Bonchon Remote Kitchen Restaurant?

According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee operates a Remote Kitchen Restaurant, the Protected Territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. However, the specific Protected Territory will depend on the franchisee's specific market and circumstances.

This means that Bonchon franchisees operating a Remote Kitchen Restaurant will have a very limited protected territory compared to a traditional restaurant. This reflects the delivery-focused nature of remote kitchens, where a large dine-in customer base is not a factor. The smaller radius suggests Bonchon expects these locations to rely heavily on delivery orders within a concentrated area.

It's important to note that even within this limited territory, Bonchon retains the right to operate or franchise other Bonchon businesses at nontraditional locations, such as ghost kitchens or mobile units. This could potentially introduce competition within the franchisee's protected territory, so prospective franchisees should carefully evaluate the market and potential for competition from these alternative channels.

Prospective franchisees should discuss with Bonchon the factors that will determine the specific Protected Territory for their Remote Kitchen Restaurant, and how Bonchon assesses market conditions to ensure sufficient customer demand within the limited radius. Understanding these factors is crucial for evaluating the potential profitability and success of a Bonchon Remote Kitchen Restaurant.