Who determines the prices and terms for new, upgraded, or substitute proprietary software for Bonchon franchisees?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to use proprietary software and software support services that either we develop and provide or which are provided by a third-party supplier we designate, and you will execute any standard form software license agreement reasonably necessary to do so. You agree to purchase from us or our designee, as applicable, new, upgraded or substitute proprietary software whenever we determine to adopt them systemwide, at the prices and on the terms that we or such third-party vendor establish, but you will not be required to do so more than once in any calendar year.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 45–60)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon or a third-party vendor they designate will establish the prices and terms for any new, upgraded, or substitute proprietary software that franchisees are required to adopt systemwide. Bonchon can only mandate these purchases once per calendar year.
This means that Bonchon franchisees must budget for potential software updates or replacements annually, and they will have to accept the pricing and terms dictated by Bonchon or its chosen vendor. While franchisees don't have a choice in the vendor or pricing, Bonchon is limited to requiring such updates only once a year.
It is common in franchising for franchisors to mandate technology updates to maintain system-wide consistency and efficiency. However, the cost and frequency of these updates can significantly impact a franchisee's profitability. Therefore, prospective Bonchon franchisees should inquire about the typical cost and frequency of software updates to better understand the ongoing technology expenses.