Regarding Bonchon franchises, what is a franchisee's obligation concerning breaches of Confidentiality/Non-Competition Agreements executed by individuals referenced in Section 12.05?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
12.06 Your and Our Enforcement of Confidentiality/Non-Competition Agreements
You agree to vigorously and vigilantly prosecute to the fullest extent permitted by law breaches of any Confidentiality/Non-Competition Agreement executed by any of the individuals referenced in Section 12.05, and you acknowledge our right, to be exercised as we alone determine, to ourselves and enforce the terms of any such executed Confidentiality/Non-Competition Agreement. If the substantive provisions of our Confidentiality/Non-Competition Agreement have been breached by an individual employed, engaged or otherwise serving your franchised Bonchon Business who has not executed a Confidentiality/Non-Competition Agreement, you must nevertheless vigorously and vigilantly prosecute such conduct to the fullest extent permitted by law.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees have specific obligations regarding the enforcement of Confidentiality/Non-Competition Agreements. Bonchon franchisees must vigorously and vigilantly prosecute breaches of these agreements to the fullest extent permitted by law. These agreements are executed by individuals referenced in Section 12.05 of the franchise agreement.
Bonchon also retains the right to enforce these agreements themselves, as they alone determine. This means that even if the franchisee is taking action, Bonchon can independently decide to pursue enforcement as well.
Furthermore, if an individual employed by the Bonchon franchisee breaches the substantive provisions of a Confidentiality/Non-Competition Agreement, even if they have not actually signed such an agreement, the franchisee is still obligated to vigorously and vigilantly prosecute such conduct to the fullest extent permitted by law. This highlights the importance Bonchon places on protecting its confidential information and maintaining fair competition, placing a legal obligation on franchisees to actively pursue enforcement, regardless of whether a formal agreement is in place. This could involve legal action, termination of employment, or other measures to rectify the breach and prevent future occurrences.