As a Bonchon franchisee, will I automatically be enrolled in the Purchasing Cooperative?

According to Bonchon's 2025 Franchise Disclosure Document, as a franchisee, you will automatically be enrolled in the Purchasing Cooperative. Bonchon participates in a purchasing cooperative with Consolidated Concepts. As a member, you have the option to purchase products from Sysco at the price negotiated by the Purchasing Cooperative, unless the product you wish to purchase is covered under Bonchon's distribution agreement with Sysco.

This means that as a Bonchon franchisee, you will gain access to negotiated pricing and potentially lower costs for certain products through the Purchasing Cooperative's agreement with Sysco. However, this benefit is conditional, as you must purchase products covered under Bonchon's direct distribution agreement with Sysco through that specific agreement, even if the Purchasing Cooperative offers a lower price.

Franchisors often negotiate purchasing arrangements to leverage the collective buying power of the franchise system, aiming to reduce costs and ensure consistent product quality. Bonchon's participation in the Purchasing Cooperative and its direct distribution agreements with suppliers like Sysco are examples of this common practice. Franchisees should carefully evaluate the terms of both the Purchasing Cooperative and the direct distribution agreements to determine the most cost-effective purchasing options for their specific needs.