factual

What is the first step a Bonchon franchisee must take to propose an alternative source of supply?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

If we specify any particular source of supply for any particular non-proprietary product, service or equipment and you wish to propose an alternative source of supply, we will exercise our approval of your proposed alternative supply reasonably, in accordance with the following procedure.

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon specifies a particular source of supply for a non-proprietary product, service, or equipment, and a franchisee wants to propose an alternative, the franchisee must submit a proposal to Bonchon for approval. Bonchon will then evaluate the proposed alternative supplier reasonably, following their established procedure.

This process ensures that Bonchon franchisees maintain the brand's quality and standards while allowing for potential cost savings or other benefits from alternative suppliers. However, Bonchon retains control over the supply chain by requiring approval of any changes. This protects the Bonchon brand and ensures consistency across all franchise locations.

Bonchon also reserves the right to test, analyze, inspect, or randomly sample the product, service, or equipment of any supplier the franchisee proposes, at the franchisee's expense. The cost of testing can range from $1,000 to $2,500, depending on the nature and complexity of the testing required. Bonchon will provide written notice of approval or disapproval within 90 days. If Bonchon revokes approval of a supplier, they will provide written notice to the franchisee.

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.