What is my obligation regarding the use of Confidential Information of Bonchon during and after my association with the franchisee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
ive the breach, will entitle us to terminate this Agreement immediately upon notice to you, with no opportunity to cure. If an audit reveals that you understated your Gross Revenues by 2% or less for any week or for the entire period, you must immediately pay us the amount due, plus interest, but we will pay the cost of the audit.
12. CONFIDENTIAL INFORMATION AND COVENANTS NOT TO COMPETE
12.01 Restriction on Use of Confidential Information
You agree to use and permit the use of our Confidential Information (as defined below) solely in connection with the operation of your franchised Bonchon Business. You further agree that you will never – during the Initial Term or any Successor Term of this Agreement, or any time after this or any Successor Agreement expires or terminates, or your rights under this Agreement or any Successor Agreement are assigned or terminated – divulge or use any of our Confidential Information for the benefit of yourself, your owners (if you are a business entity) any third party (including any person, business entity or enterprise of any type or nature), nor will you directly or indirectly aid any such third party to imitate, duplicate or "reverse engineer" any of our Confidential Information.
"Confidential Information" includes (without limitation) all information, knowledge, trade secrets or know-how utilized or embraced by the Bonchon System or which otherwise concerns your or our systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases or software. Confidential Information includes (without limitation): all elements of the Bonchon System and all products, services, equipment, technologies, recipes, food and beverage preparation techniques, policies, standards, requirements, criteria and procedures that now or in the future are a part of the Bonchon System; our Manuals (including Supplements to the Manuals); all specifications, sources of supply, all procedures, systems, techniques and activities employed by us or by you in the offer and sale of products and/or services at or from your franchised Bonchon Business; all pricing paradigms established by us or by you;
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees have strict obligations regarding the use of confidential information, both during and after their association with Bonchon. Franchisees must use Bonchon’s Confidential Information solely for operating their franchised Bonchon Business. This restriction extends beyond the term of the Franchise Agreement; it continues even after the agreement expires or terminates. Franchisees are prohibited from divulging or using any of Bonchon’s Confidential Information for their own benefit, the benefit of their owners (if the franchisee is a business entity), or any third party. They also cannot assist any third party in imitating, duplicating, or reverse engineering Bonchon’s Confidential Information.
The definition of "Confidential Information" is broad and includes all information, knowledge, trade secrets, or know-how utilized by the Bonchon System. This encompasses systems of operation, programs, services, products, customer information, practices, materials, books, records, manuals, computer files, databases, and software. It specifically includes all elements of the Bonchon System, such as products, services, equipment, technologies, recipes, food and beverage preparation techniques, policies, standards, requirements, criteria, and procedures. The definition also extends to Bonchon’s Manuals, specifications, sources of supply, pricing paradigms, and information pertaining to suppliers.
Upon the expiration or termination of the franchise agreement, franchisees must discontinue the use of the Proprietary Marks and are prohibited from operating under any name or manner that might suggest they are still associated with Bonchon. Franchisees cannot use any of Bonchon’s Confidential Information, trade secrets, procedures, forms, techniques, know-how, or materials acquired during their relationship with Bonchon. This ensures that franchisees do not leverage Bonchon’s proprietary information for their own ventures or to benefit competitors after the franchise agreement ends. Franchisees acknowledge that failure to comply with these restrictions on confidential information can result in termination of the Franchise Agreement.