Who bears the expense for inspections and sample testing when Bonchon evaluates a proposed new supplier?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
rnative supplier if that supplier meets our criteria. To obtain our written approval for the alternative supplier:
- You must submit a written request to us for approval of the supplier.
- The supplier must meet our specifications and quality control standards to our reasonable satisfaction.
- We or our agents must have the right, and must be permitted, to inspect the proposed supplier's facilities and to have samples from the supplier delivered either to us, an independent laboratory or another designee for testing, all at your and/or the proposed supplier's expense.
- The supplier must be able to supply the particular non-proprietary product to franchisees at competitive prices.
- We may require that the proposed supplier also agree to comply with such other requirements we may deem appropriate, including our ability to conduct continuing inspections and, in connection therewith, charge reasonable continuing inspection fees and administrative costs
- The supplier must demonstrate to our reasonable satisfaction that it is in good standing in the business community for financial soundness and reliability of its product or service.
We may test, at your expense, the product or service of any supplier you propose, whether or not the supplier is then approved by us. We will give you notice of our approval or disapproval of the supplier within 90 days of our receipt of all the information we need to evaluate the product, service or supplier you propose. If we test the product or service, the cost to you of testing will range from $1,000 to $2,500, depending on the nature and complexity of the testing necessary for the product or service. If we revoke approval of any supplier, we will
Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee wants to use an alternative supplier, the franchisee and/or the proposed supplier will bear the expense for inspections and sample testing. Bonchon or its agents must have the right, and must be permitted, to inspect the proposed supplier's facilities and to have samples from the supplier delivered either to Bonchon, an independent laboratory, or another designee for testing.
Bonchon may also test the product or service of any supplier the franchisee proposes, whether or not the supplier is then approved by Bonchon, at the franchisee's expense. The cost to the franchisee for this testing will range from $1,000 to $2,500, depending on the nature and complexity of the testing necessary for the product or service.
This means that if a Bonchon franchisee is not satisfied with Bonchon's designated suppliers and wants to explore alternatives, they must be prepared to cover all costs associated with the evaluation of the new supplier. This includes inspection fees, sample delivery costs, and testing fees, which can range from $1,000 to $2,500. This policy ensures that Bonchon maintains control over its supply chain and quality standards, while also placing the financial burden of exploring alternative suppliers on the franchisee.