Who bears the expense for inspecting a proposed supplier's facilities for a Bonchon franchise?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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Nothing in the foregoing shall be deemed to require us to approve any particular supplier or to require us to make available to prospective suppliers any standards, specifications, procedures or protocols that we, in our business judgment, deem confidential.
We reserve the right to test, analyze, inspect or randomly sample the product, service or equipment of any supplier you propose at your expense, whether or not we ultimately approve or reject the supplier. We will give you written notice of our approval or disapproval of your proposed supplier within 90 days
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the franchisee is responsible for covering the expenses associated with the inspection of a proposed supplier's product, service, or equipment. Bonchon retains the right to test, analyze, inspect, or sample a supplier that the franchisee suggests, and the franchisee must bear these costs, regardless of whether Bonchon ultimately approves or rejects the supplier.
The cost to the franchisee for testing a proposed supplier's product or service will range from $1,000 to $2,500. This range depends on the nature and complexity of the testing required. Bonchon will provide the franchisee with written notice of their decision, whether it's an approval or disapproval, within 90 days of the proposal.
This policy means that a Bonchon franchisee needs to factor in potential testing costs when considering new suppliers. It is important to note that even if the supplier is ultimately rejected by Bonchon, the franchisee will not be reimbursed for the testing expenses. This arrangement allows Bonchon to maintain quality control and standards across its franchise system, while placing the financial burden of supplier verification on the individual franchisee.