Is Bonchon restricted from soliciting or advertising to individuals within a franchisee's Development Territory?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You acknowledge that this Agreement confers no marketing exclusivity in the Development Territory on you, and that all Bonchon Businesses (whether Company-owned, Company joint-ventured, franchised or otherwise) may solicit, service, advertise and offer their products and services to any individual or entity, regardless of your or its geographic location, including your Development Territory.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees do not receive marketing exclusivity within their Development Territory. Bonchon Businesses, including company-owned, joint-ventured, and franchised locations, can solicit, service, advertise, and offer their products to anyone, regardless of geographic location, including within a franchisee's Development Territory. This means that even within an area where a franchisee is developing Bonchon restaurants, other Bonchon outlets can market to the same potential customers.
Bonchon and its affiliates retain the right to engage in any business activity within or outside the Development Territory, except as restricted by Section 3.02 of the agreement. This agreement does not grant the franchisee any right to benefit from Bonchon's other business activities. Bonchon can engage in or authorize others to engage in any form of business, offering and selling any type of product or service, provided it does not sell the same products or services under Bonchon's Proprietary Marks that the franchisee's Bonchon Businesses offer, with some exceptions.
Bonchon also has the right to sell Bonchon System products and services to national, regional, and institutional accounts both within and outside the Development Territory. These accounts include entities with a presence beyond the franchisee's territory, such as business entities with multiple locations, government agencies, lodging networks, healthcare networks, and the military. Bonchon retains the right to contract with these national, regional, and institutional accounts, even if they include facilities within the franchisee's Development Territory. If Bonchon receives orders from these accounts for delivery or performance within the franchisee's territory, Bonchon has the option, but not the obligation, to allow the franchisee to fulfill the order at the agreed-upon price. If the franchisee cannot or does not want to serve the customer, Bonchon, its affiliate, or another franchisee may serve the customer within the franchisee's Development Territory without any compensation to the franchisee.