Can a Bonchon franchisee engage in wholesale sales of Bonchon products?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You may only sell Bonchon System products and services at retail from your Bonchon Restaurant, and you may not engage in the wholesale sale and/or distribution of any Bonchon product, service, equipment or other component, or any related product or service.
Bonchon Restaurant at the Restaurant Location situated in the Protected Territory.
You may only engage in the retail sale of Bonchon System products and services. You are prohibited from engaging in the wholesale sale or distribution of any Bonchon System products or services, or the products, equipment, and services which your Bonchon Business is required or permitted to use or sell under this Agreement, or any component or ingredient of any of the foregoing which now or in the future constitutes part of the Bonchon System. Retail sale" means any sale by you directly to an ultimate consumer. "Wholesale sale or distribution" means any sale or distribution by you to a third party for resale, retail sale, or further distribution. "Component" means any constituent part, ingredient, element, segment or derivative.
Source: Item 16 — RESTRICTIONS ON WHAT THE FRANCHISEE MAY SELL (FDD page 71)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are explicitly restricted from engaging in wholesale sales of Bonchon products. The FDD states that franchisees may only sell Bonchon System products and services at retail from their Bonchon Restaurant.
This restriction means a Bonchon franchisee's sales are limited to direct sales to consumers. They cannot sell or distribute Bonchon products to third parties for resale or further distribution. The FDD defines "retail sale" as sales directly to the ultimate consumer, while "wholesale sale or distribution" means sales to a third party for resale, retail sale, or further distribution.
Bonchon and its affiliates retain the right to sell Bonchon System products through alternative channels of distribution, such as the internet, supermarkets, and other retail stores. They also have the right to sell to national, regional, and institutional accounts. Franchisees will not receive compensation for sales made through these alternative channels or to these national accounts, even if the delivery or performance of the sale occurs within the franchisee's territory. This is a common practice in franchising, allowing the franchisor to pursue large accounts and diverse distribution methods without compensating individual franchisees.