Are there any exceptions to what is considered Confidential Information under the Bonchon agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Confidential Information will not, however, include information which you can demonstrate came to your attention before we disclosed it to you (unless illegally or improperly procured by you before our disclosure) or which, at or after the time of disclosure, has become a part of the public domain through publication or communication by others, but not through any act of yours.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, there are exceptions to what is considered confidential information. Information that a franchisee can demonstrate came to their attention before Bonchon disclosed it, or information that becomes part of the public domain through publication or communication by others (not due to any action by the franchisee), is not considered confidential. This means that if the franchisee already knew certain information before it was disclosed by Bonchon, or if the information becomes publicly available through legitimate means, the franchisee is not obligated to keep that information confidential under the terms of the franchise agreement.
This exception is important for prospective Bonchon franchisees because it clarifies the scope of their confidentiality obligations. It protects them from being held liable for disclosing information that was already known to them or that has become publicly available through no fault of their own. However, the franchisee bears the burden of proving that the information falls under one of these exceptions.
It is fairly standard practice in franchising to have exceptions to confidentiality agreements. These exceptions are designed to protect franchisees from being unduly restricted in their business activities and to ensure that they are not held liable for information that is already in the public domain or that they already possessed prior to entering into the franchise agreement. Franchisees should carefully review the definition of "Confidential Information" and any exceptions to ensure they understand their obligations.