What protection does Bonchon provide to franchisees regarding the use of trademarks and trade names?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
nt standards, specifications and requirements in order to maintain the high and consistent quality that is critical to attracting and keeping customers for Restaurants.
You have applied for a franchise to own and operate a Bonchon Restaurant.
2. GRANT OF FRANCHISE AND LICENSE
2.01 Grant of Franchise and Licenses
We grant you, and you accept, the right to use the Proprietary Marks and the System in connection with establishing and operating a Bonchon Business and Restaurant from the Restaurant Location specified in Section 3.01 of this Agreement. You agree to use the Proprietary Marks and Bonchon System as we may change, improve, modify or further develop them from time to time as provided in this Agreement, and to operate your Bonchon Business and its Restaurant only in accordance with the terms and conditions of this Agreement and all related agreements, the Manuals and any Supplement to the Manuals. You further agree to honestly and diligently perform your obligations under this Agreement and to use your best efforts to promote the Restaurant. You may not subfranchise or otherwise grant to any other "Person" (meaning both natural persons and legal entities, including corporations, partnerships, limited liability companies and trusts) any interest in this Agreement or the franchise granted hereby, except as otherwise provided in this Agreement.
3. RESTAURANT LOCATION
3.01 Restaurant Location; Protected Territory
Your right to operate a Bonchon Business and Restaurant is restricted to the location designated in Exhibit A (the "Restaurant Location"). Your Bonchon Business will be prohibited from directly delivering products to customers; rather, it will be required to utilize a third-party delivery service that we have designed and/or approved in advance in order to fulfill online delivery orders. Under this Agreement, your Bonchon Business may establish only one Bonchon Restaurant located at the Restaurant Location. You shall be granted a protected territory that will be a certain area around your Restaurant Location (the "Protected Territory"). Your Protected Territory will be described in Exhibit A annexed hereto. If we use both a written description and a map to define your Protected Territory, you acknowledge and expressly agree that should there be a conflict between the written description and the map, the written description will control.
3.02 Our Restrictions
Within the Protected Territory, neither we nor any affiliate (as defined in Section 3.04 below) will operate or grant a franchise for a Bonchon Business operated under the Proprietary Marks of the type franchised to you hereunder, except as provided in Section 3.04 ("Rights We Reserve"). These restrictions will terminate immediately upon the expiration or termination of this Agreement for any reasons.
Outside of the Protected Territory, we and/or our affiliates reserve the right to operate any number of Bonchon Businesses and Restaurants, and/or authorize others to operate same, at any location whatsoever, including one or more locations that may be proximate to, adjacent to or abutting the boundary of the Protected Territory.
3.03 Your Restrictions
Your Bonchon Business may only offer and sell its products and services in, at and from your Bonchon Restaurant at the Restaurant Location situated within the Protected Territory. Under no circumstance may your Business establish any physical presence outside of your Protected Territory at or from which your products or services are sold or furnished.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon franchisees are granted the right to use Bonchon's proprietary marks and system to operate a Bonchon restaurant at a specific location. This right is restricted to the designated location outlined in Exhibit A of the franchise agreement. Franchisees are required to use the proprietary marks and Bonchon system as Bonchon may modify or improve them, and they must operate their business in accordance with the franchise agreement and manuals.
Bonchon is responsible for taking action to defend the franchisee against claims related to the use of Bonchon's proprietary marks or copyrights, provided the franchisee is using them according to the agreement. Bonchon will indemnify the franchisee against losses, costs, or expenses from such claims. However, Bonchon has the right to control the defense, compromise, and settlement of these claims, and the franchisee must cooperate fully. The franchisee cannot settle any claim without Bonchon's written consent, and Bonchon is not obligated to defend or indemnify the franchisee if the claim arises from the franchisee's violation of the agreement terms.
Upon termination of the franchise agreement, the franchisee must discontinue the use of Bonchon's proprietary marks and is prohibited from operating under any name that might suggest they are still associated with Bonchon. The franchisee must also take action to cancel any assumed name registrations containing the Bonchon trademark. If the franchisee fails to do so, Bonchon has the right to act on their behalf to discontinue the use of the name. This ensures that upon termination, the franchisee completely disassociates from the Bonchon brand to protect the integrity of the trademark.