exception

Under what circumstances is information related to the Bonchon System not considered confidential according to the franchise agreement?

Bonchon Franchise · 2025 FDD

Answer 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, certain information is not considered confidential. Specifically, information that the franchisee can demonstrate was already known to them before Bonchon disclosed it, unless the franchisee illegally or improperly obtained it, is not confidential. Additionally, information that becomes part of the public domain through publication or communication by others, without any action by the franchisee, is also not considered confidential.

This means a prospective Bonchon franchisee is not bound to keep information secret if they already possessed it legitimately before signing the franchise agreement. It also means that if information about the Bonchon system becomes publicly available through no fault of the franchisee, it loses its confidential status. This is a fairly standard clause in franchise agreements, as it protects franchisees from being penalized for information they already knew or that has become common knowledge.

However, it's important to note that the franchisee bears the burden of proof to demonstrate they had prior knowledge or that the information entered the public domain through legitimate means. This could require providing documentation or other evidence. The franchisee is still obligated to protect any information designated as confidential by Bonchon that does not fall under these exceptions.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.