What is the typical radius range for a Bonchon Protected Territory?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
aurant Location" means a location you select and we approve, from which you conduct the Bonchon Business. Except in high-density population centers, your Protected Territory (which we will draw using our mapping system) will consist of the area inside a circle whose center lies at the Bonchon Restaurant Location and whose radius extends outward from the circle's center.
We approve or disapprove of the site for your Restaurant Location under pursuant to the terms and conditions set forth in the Franchise Agreement and in accordance with our then-current standards imposed in connection with same. The Protected Territory for your Bonchon Business depends on your market area, including population density, drive times, and similar factors. There is no set minimum or maximum Protected Territory. However, we do not anticipate (as a general rule) that the radius will ever be greater than 3 miles from the Bonchon Business or less than 0.25 miles. If your Bonchon Business will operate a Remote Kitchen Restaurant, your Protected Territory will be no greater than a one-tenth (0.1) mile radius from the Bonchon Business. Your Restaurant's specific Protected Territory will be somewhere in that range depending on your specific market and circumstances. For Restaurants located in high-density population centers, your Protected Area will be determined on a case-by-case basis. The Restaurant Location and Protected Territory will be designated in Exhibit A to your Franchise Agreement.
Source: Item 12 — TERRITORY (FDD pages 60–65)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the radius of a Bonchon restaurant's protected territory typically ranges from 0.25 miles to 3 miles. The specific size of the protected territory depends on factors such as market area and population density. However, for Remote Kitchen Restaurants, the protected territory is no greater than a one-tenth (0.1) mile radius from the Bonchon Business. For restaurants located in high-density population centers, the protected territory is determined on a case-by-case basis.
This means that, outside of high-density population centers and remote kitchens, a franchisee can expect to have a protected territory extending at least a quarter of a mile but generally no more than three miles from their restaurant. This protection prevents Bonchon from opening another franchise or company-owned restaurant within that radius, offering some assurance against direct competition. However, the FDD also states that the franchisee may face competition from other franchisees, from outlets that Bonchon owns, or from other channels of distribution or competitive brands that Bonchon controls.
It's important to note that these radius guidelines are not set in stone. Bonchon retains the discretion to adjust the protected territory based on specific market conditions. A prospective franchisee should carefully evaluate the population density and competitive landscape of their desired location to understand how the protected territory might impact their business. Franchisees should also inquire about the criteria Bonchon uses to determine protected territories in high-density areas to fully understand the potential for competition.