Does Bonchon need to post a bond or security to obtain an injunction against a franchisee violating the non-compete agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
y claim or assertion that we have unreasonably withheld or delayed any consent or approval under this Franchise Agreement. You waive any such claim for damages. You may not claim any such damages by way of setoff, counterclaim or defense. Your sole remedy for the claim will be an action or proceeding to enforce the Agreement provisions, for specific performance or for declaratory judgment.
25. INJUNCTION
25.01 Injunction
You explicitly affirm and recognize the unique value and secondary meaning attached to the Bonchon System and the Proprietary Marks. Accordingly, you agree that any noncompliance by you with the terms of this Agreement, or any unauthorized or improper use of the Bonchon System or the Proprietary Marks by you, will cause irreparable damage to us and other Bonchon System franchisees. You therefore agree that if you engage in this non-compliance, or unauthorized and/or improper use of the Bonchon System or Proprietary Marks, during or after the term of this Agreement, we and our affiliates will be entitled to both temporary and permanent injunctive relief against you from any court of competent jurisdiction, in addition to all other remedies which we may have at law.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon does not have to post a bond or any other form of security to obtain a temporary or permanent injunction against a franchisee. This applies if the franchisee engages in non-compliance or unauthorized use of the Bonchon system or proprietary marks, either during or after the term of the agreement.
This means that if a Bonchon franchisee violates the non-compete agreement, Bonchon can seek immediate legal action to prevent further violation without having to provide financial guarantees to the court. The franchisee consents to the entry of these injunctions without Bonchon needing to prove that money damages would be an adequate remedy.
Furthermore, the franchisee is responsible for covering all costs and expenses, including reasonable attorney's fees, that Bonchon incurs while securing the injunctive relief. This provision strengthens Bonchon's position in enforcing the non-compete agreement and protects its brand and system standards. It also places the financial burden of legal action on the franchisee in case of a violation.