What must a Bonchon franchisee do to assume the obligation to exclusively purchase and serve non-alcoholic beverages licensed by Pepsi-Cola and/or the Pepsi/Lipton Tea Partnership?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
To assume this obligation, you must execute Pepsi-Cola's form of Participating Franchisee Agreement (a copy of which is attached as Exhibit I to this Disclosure Document). If you purchase a Restaurant from an existing franchisee that has yet to convert to exclusively purchasing and selling non-alcoholic beverages licensed by Pepsi-Cola and/or the Partnership, then you will have to undertake this obligation by entering into Pepsi-Cola's form of Participating Franchisee Agreement attached as Exhibit I to this Disclosure Document.
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, to fulfill the obligation of exclusively purchasing and serving non-alcoholic beverages licensed by Pepsi-Cola and/or the Pepsi/Lipton Tea Partnership, a Bonchon franchisee must execute Pepsi-Cola's form of Participating Franchisee Agreement. A copy of this agreement is included as Exhibit I to the Disclosure Document. This requirement stems from a beverage sales agreement Bonchon entered into with PepsiCo Sales, Inc. and Pepsi Cola Advertising and Marketing Inc. in January 2023.
This requirement applies to both new Bonchon franchisees and those purchasing an existing restaurant. If an existing franchisee has not yet converted to exclusively purchasing and selling Pepsi-Cola and/or Partnership beverages, the new franchisee must undertake this obligation by entering into Pepsi-Cola's Participating Franchisee Agreement.
This agreement ensures that all Bonchon restaurants adhere to the beverage sales agreement established between Bonchon and Pepsi-Cola. For a prospective franchisee, this means they will be limited to offering Pepsi-Cola and Pepsi/Lipton Tea Partnership products, and must formally agree to this restriction through the Participating Franchisee Agreement. It is important for potential franchisees to review Exhibit I to fully understand the terms and conditions of this agreement before signing.