What are the specific obligations of a Bonchon franchisee regarding the use of the franchisor's social media platforms (Item 11), and how does this relate to the promotion of the brand and the attraction of new customers?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may not maintain a World Wide Web site or social media page; otherwise maintain a presence or advertise on the Internet, through social media or in any other mode of electronic commerce in connection with the franchised Business; establish a link to any website we establish at or from any other website or page; or, at any time establish any other website, social media or electronic commerce presence which in whole or in part incorporates the "Bonchon" name, any Bonchon logo, or any name or logo confusingly similar thereto. We alone have the right, but not the obligation, to establish, maintain, modify or discontinue all internet, worldwide web and electronic commerce activities pertaining to the System.
We alone will be, and at all times will remain, the sole owner of the copyrights to all material which appears on any Bonchon website we establish and maintain, including all material you may furnish to us as described above.
After your obligations under the New Restaurant Marketing Plan have been fully satisfied and continuing through the end of your Bonchon Business' first full calendar year of operations, you agree to expend on average the greater of: $1,166 per month or 1% of the preceding month's Gross Revenues on Local advertising and promotion. Following your Bonchon Business' first full calendar year of operations and continuing for the remainder of the Initial Term of your Franchise Agreement, you agree to expend annually at least 2% of the previous year's Gross Revenues on Local advertising and promotion. "Local advertising and promotion" means the local or regional Advertising and promotional activities that we specify in our Manuals or otherwise, or approve in advance as provided in Section 10.02 of the Franchise Agreement, including, but not limited to, expenditures on television, radio, newspaper, magazines, out of home, posters, banners, brochure, direct mail, social media platforms such as Facebook, Instagram, yelp, and other digital platforms.
We may establish one or more websites accessible through one or more uniform resource locators ("URL's") and, if we do, we will design and provide for the benefit of your franchised Bonchon Business a "click through" subpage at each of these websites for the promotion of your Business. If we establish one or more websites or other modes of electronic commerce and if we provide a "click through" subpage at each of these websites for the promotion of your Business, you must routinely provide us with updated copy, photographs and news stories about your franchised Bonchon Business suitable for posting on your Business' "click through" subpage, We will specify the content, frequency and procedure of these in our Manuals.
Approve or disapprove any advertising, direct mail, identification and promotional materials and programs you propose within 10 business days of receipt. If we do not respond within 10 business days, the material is disapproved.
We may require you to, in any and all advertising, marketing and other promotional materials, feature the fact that franchises for Bonchon Restaurants are available, such notice to be in the form, style and placement we designate. You must furnish any and all such advertising, marketing and other promotional materials to us, electronically or in such other form we designate, prior to your use, with the express understanding that we may be legally required to file same with various state regulatory authorities, which filings you will be required to assent to in connection with entering into the Franchise Agreement.
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees have specific obligations and limitations regarding social media and online presence. Bonchon retains control over the brand's online presence, which impacts how the brand is promoted and how new customers are attracted.
Bonchon franchisees are generally prohibited from creating or maintaining their own websites, social media pages, or any other online presence that uses the Bonchon name or logos. Bonchon reserves the exclusive right to manage all internet, web, and electronic commerce activities related to the Bonchon system. However, if Bonchon establishes websites, they will provide a "click through" subpage for each franchise location to promote their specific business. Franchisees are then obligated to provide updated content, photos, and news to Bonchon for use on these subpages, following the content, frequency, and procedures outlined in the Bonchon manuals.
Despite these restrictions, franchisees are required to participate in local advertising and promotion, which can include social media platforms. After the initial New Restaurant Marketing Plan period, franchisees must spend a minimum amount on local advertising, which is the greater of $1,166 per month or 1% of the preceding month's gross revenues during the first full calendar year. Following that first year, the requirement increases to at least 2% of the previous year's gross revenues. These local advertising efforts must adhere to Bonchon's specifications in the manuals or be approved in advance by Bonchon.
Bonchon retains the right to approve or disapprove any advertising and promotional materials proposed by the franchisee within 10 business days. If Bonchon does not respond within this timeframe, the material is considered disapproved. This approval process extends to social media content, ensuring that all advertising aligns with Bonchon's brand standards and marketing strategies. Bonchon may also require franchisees to include specific notices about franchise availability in their advertising materials.