Under what circumstances is a Bonchon franchisee or franchisor permitted to disclose the terms and conditions of the franchise agreement to unrelated third parties without consent?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
12. CONFIDENTIAL INFORMATION AND COVENANTS NOT TO COMPETE
12.01 Restriction on Use of Confidential Information
You agree to use and permit the use of our Confidential Information (as defined below) solely in connection with the operation of your franchised Bonchon Business. You further agree that you will never – during the Initial Term or any Successor Term of this Agreement, or any time after this or any Successor Agreement expires or terminates, or your rights under this Agreement or any Successor Agreement are assigned or terminated – divulge or use any of our Confidential Information for the benefit of yourself, your owners (if you are a business entity) any third party (including any person, business entity or enterprise of any type or nature), nor will you directly or indirectly aid any such third party to imitate, duplicate or "reverse engineer" any of our Confidential Information.
"Confidential Information" includes (without limitation) all information, knowledge, trade secrets or know-how utilized or embraced by the Bonchon System or which otherwise concerns your or our systems of operation, programs, services, products, customers, practices, materials, books, records, manuals, computer files, databases or software. Confidential Information includes (without limitation): all elements of the Bonchon System and all products, services, equipment, technologies, recipes, food and beverage preparation techniques, policies, standards, requirements, criteria and procedures that now or in the future are a part of the Bonchon System; our Manuals (including Supplements to the Manuals); all specifications, sources of supply, all procedures, systems, techniques and activities employed by us or by you in the offer and sale of products and/or services at or from your franchised Bonchon Business; all pricing paradigms established by us or by you; all of our and/or your sources (or prospective sources) of supply and all information pertaining to same (including wholesale pricing structures, the contents of sourcing agreements and the identity of
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, both the franchisee and franchisor face restrictions on disclosing confidential information. Bonchon's FDD states that franchisees agree to use Bonchon's confidential information solely for operating their franchised business. This restriction applies during the term of the agreement and even after it expires or terminates. Franchisees are prohibited from divulging or using confidential information for their own benefit, the benefit of their owners (if a business entity), or any third party. They also cannot assist any third party in imitating, duplicating, or reverse engineering Bonchon's confidential information.
Confidential information is broadly defined to include all aspects of the Bonchon System, such as operational systems, programs, services, products, customer information, practices, materials, manuals, computer files, databases, and software. It also encompasses elements like recipes, food and beverage preparation techniques, policies, standards, requirements, criteria, procedures, manuals, specifications, sources of supply, pricing paradigms, and supplier information.
This clause protects Bonchon's trade secrets and proprietary information, preventing franchisees from using this knowledge to compete with Bonchon or share it with competitors. For a prospective franchisee, this means understanding the strict confidentiality obligations and the potential legal ramifications of violating them. Franchisees should be aware that these restrictions extend beyond the termination of the franchise agreement, safeguarding Bonchon's interests indefinitely.