Does Bonchon retain title to the Bonchon Software, system documentation manuals, and other materials furnished to the Licensee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensor retains title to the Bonchon Software, the system documentation manuals, any additional materials and information furnished by Licensor in any form (including but not limited to object, machine-readable and/or printed form). Licensee agrees to keep every item to which Licensor retains title free and clear of all claims, liens and encumbrances except those of Licensor. Any act of
Licensee, voluntary or involuntary, purporting to create a claim, lien or encumbrance on such an item will be void.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon retains the title to the Bonchon Software, system documentation manuals, and any additional materials and information provided to the licensee. This means that while franchisees are granted a license to use these items, ownership remains with Bonchon.
As a Bonchon franchisee, you must keep all items to which Bonchon retains title free and clear of all claims, liens, and encumbrances, except those of Bonchon. Any action by the franchisee that attempts to create a claim, lien, or encumbrance on these items will be considered void. This protects Bonchon's assets and ensures that franchisees do not attempt to leverage the software or materials as collateral.
This arrangement is typical in franchising, where the franchisor licenses intellectual property and systems to franchisees while maintaining ownership. This allows Bonchon to maintain control over its brand standards and proprietary information, ensuring consistency across all franchise locations. Upon termination of the franchise agreement, the franchisee must return all such materials to Bonchon.