What is a 'Protected Territory' for a Bonchon Restaurant?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
will conduct during our pre-opening on-site training.
ITEM 12 TERRITORY
Franchise Agreement
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control. We will grant you a designated location (the "Restaurant Location") in a specific protected territory (the "Protected Territory") within which you must operate your Bonchon Restaurant.
You may operate your franchised Business from only one Restaurant Location within your Protected Territory. "Restaurant Location" means a location you select and we approve, from which you conduct the Bonchon Business. Except in high-density population centers, your Protected Territory (which we will draw using our mapping system) will consist of the area inside a circle whose center lies at the Bonchon Restaurant Location and whose radius extends outward from the circle's center.
We approve or disapprove of the site for your Restaurant Location under pursuant to the terms and conditions set forth in the Franchise Agreement and in accordance with our then-current standards imposed in connection with same. The Protected Territory for your Bonchon Business depends on your market area, including population density, drive times, and similar factors. There is no set minimum or maximum Protected Territory. However, we do not anticipate (as a general rule) that the radius will ever be greater than 3 miles from the Bonchon Business or less than 0.25 miles. If your Bonchon Business will operate a Remote Kitchen Restaurant, your Protected Territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. Your Restaurant's specific Protected Territory will be somewhere in that range depending on your specific market and circumstances. For Restaurants located in high-density population centers, your Protected Area will be determined on a case-by-case basis. The Restaurant Location and Protected Territory will be designated in Exhibit A to your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a Protected Territory is a specific geographic area granted to a franchisee within which they must operate their Bonchon restaurant. The franchisee may only operate their franchised business from one Restaurant Location within this Protected Territory.
Except in high-density population centers, the Protected Territory typically consists of the area inside a circle centered at the Bonchon Restaurant Location, extending outward by a radius. The size of the Protected Territory depends on market factors like population density and drive times, with no set minimum or maximum. However, Bonchon anticipates that the radius will generally not exceed 3 miles or be less than 0.25 miles. For Remote Kitchen Restaurants, the Protected Territory is smaller, with a radius of no greater than one-tenth (0.1) mile.
For restaurants in high-density population centers, the Protected Territory is determined on a case-by-case basis. The specific Restaurant Location and Protected Territory will be detailed in Exhibit A to the Franchise Agreement. While Bonchon and its affiliates will not operate a company-owned Bonchon Business or grant a franchise for a Bonchon Business within the Protected Territory while the Franchise Agreement is in effect, they can operate any number of Bonchon Businesses at locations proximate to the Protected Territory's boundary.
Bonchon and its affiliates retain the right to sell Bonchon products and services through alternative distribution methods, such as the internet, supermarkets, and telemarketing, both within and outside the Protected Territory. They also have the right to offer and sell Bonchon products and services at nontraditional locations, including those within the franchisee's Protected Territory, such as sports arenas, malls, and airports. The franchisee will not receive compensation for sales made through these alternative channels or at nontraditional locations.