Does Bonchon have to disclose confidential standards, specifications, procedures, or protocols to prospective suppliers?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
arge reasonable continuing inspection fees and administrative costs; and,
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- 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.
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. 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 the supplier, we will give you written notice.
We, our affiliate or our designee may be an approved source of supply for any non-proprietary product, service or equipment that you are required to purchase. However, you will be under no obligation to purchase any non-proprietary products, services or equipment from us, our affiliate or our designee. We will determine the prices we charge for any such product, service, or equipment and set them forth at the time of sale in our Manuals or otherwise. We reserve the right to earn a profit from selling any and all such goods and services, whether proprietary or non-proprietary.
We and/or our affiliates may derive revenue - - in the form of promotional allowances, volume discounts, commissions, other discounts, performance payments, signing bonuses, rebates, marketing and advertising allowances, free products, and other economic benefits and payments - from suppliers that we designate, approve, or recommend for some or all Bonchon Restaurants on account of those suppliers' prospective or actual dealings with your Restaurant and other Bonchon Restaurants. That revenue may or may not be related to services we or our affiliates perform. All amounts received from suppliers, whether or not based on your or other franchisees' purchases from those suppliers, will be our and our affiliates' exclusive p
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon is not required to disclose any standards, specifications, procedures, or protocols that they deem confidential to prospective suppliers.
Bonchon retains the right to test any proposed supplier's product, service, or equipment at the franchisee's expense. The cost for this testing ranges from $1,000 to $2,500, depending on the complexity of the testing. Bonchon will provide written notice of approval or disapproval within 90 days.
Bonchon, its affiliates, or designees may be approved suppliers for non-proprietary items, but franchisees are not obligated to purchase these from them. Bonchon determines the prices for these items and may profit from their sale. Bonchon may also receive revenue from suppliers through various means like promotional allowances and discounts, which they retain without restriction.