Under the Bonchon Area Development Agreement, what is the subject of Section 11.02?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Furnish us with your formation, organizational and governing documents; any shareholders, partnership, members, buy-sell or equivalents agreements and documents; list of officers, directors, shareholders, partners (limited and general), proprietors or members (including type, number and percentage of interests held) in the form annexed hereto as Exhibit G); the Confidentiality/Non-Competition Agreements required under Section 11.01; and any other documents we may reasonably request, and any amendments to them.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Section 11.02 of the Area Development Agreement pertains to the Confidentiality/Non-Competition Agreements required for business entities. Specifically, if the Area Developer is a business entity, they must furnish Bonchon with the Confidentiality/Non-Competition Agreements required under Section 11.01.
This requirement ensures that all individuals involved in the business entity, who have access to Bonchon's confidential information, are bound by confidentiality and non-competition obligations. This protects Bonchon's trade secrets, operational methods, and market strategies within the franchise system.
Prospective franchisees should carefully review the requirements related to business entities and ensure they can comply with the documentation and notification obligations. They should also understand the implications of the confidentiality and non-competition agreements for themselves and their personnel.