Outside of the Protected Territory, what rights does Bonchon reserve regarding the operation of Bonchon Businesses and Restaurants?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon retains significant rights outside of a franchisee's protected territory. Specifically, Bonchon and its affiliates reserve the right to operate any number of Bonchon Businesses and Restaurants, or authorize others to do so, at any location outside the protected territory. This includes locations near the franchisee's protected territory.

This means that while a franchisee has a defined protected territory, Bonchon can establish other outlets outside that area without restriction. These outlets can be directly competitive, and the franchisee receives no compensation from their sales. This applies to both company-owned and franchised locations.

Bonchon also retains the right to sell products and services through alternative distribution channels, such as the internet, supermarkets, and other venues, both inside and outside the protected territory. They can also establish Bonchon locations at nontraditional locations like sports arenas or airports, even within a franchisee's protected territory. These activities can impact a franchisee's potential customer base and revenue. A prospective franchisee should consider the implications of these reserved rights when evaluating the franchise opportunity and discuss potential market saturation with Bonchon.