Is a Bonchon franchisee permitted to sell beverages manufactured by the Coca-Cola Company?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
During the Term, Participating Franchisee will purchase Pepsi-Cola's and the Partnership's corporate branded postmix products ("Postmix Products") from Pepsi-Cola and the Partnership for use in preparing fountain beverage products sold under the trademarks of PepsiCo and the Partnership ("Fountain Products"). In addition, during the Term, Participating Franchisee will purchase packaged beverage products (including but not limited to carbonated soft drinks, teas, energy drinks, waters, isotonics, juices, juice drinks, dairy-based beverages and/or coffee-based beverages) marketed and sold under the trademarks of PepsiCo, its subsidiaries and affiliates and the Partnership (collectively, the "Packaged Products"). Packaged Products and Fountain Products are referred herein as "Products." Products shall be sold by the Participating Franchisee in existing, future and after-acquired (provided not already under a pre-existing beverage agreement with Pepsi-Cola) outlets owned, operated, managed, leased, franchised and/or licensed by Participating Franchisee in the 50 United States (and D.C.) under the Bonchon Korean Fried Chicken trademark (and/or any related or similar trademarks, including any successor trademarks/tradenames) ("Outlets"). Throughout the Term, the Outlets will continuously serve, dispense, sell and/or otherwise make Products available throughout its Outlets. A list of all Outlets initially included within the scope of this Agreement is attached to this Agreement as Exhibit B.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to purchase and sell PepsiCo products. Specifically, Bonchon franchisees must purchase Pepsi-Cola's and the Partnership's corporate branded postmix products for fountain beverages and packaged beverages (including soft drinks, teas, energy drinks, waters, juices, and coffee-based beverages) marketed under PepsiCo trademarks.
This agreement ensures that Bonchon restaurants consistently offer PepsiCo beverages to customers. Franchisees are obligated to continuously serve, dispense, sell, and make these PepsiCo products available in their outlets throughout the term of their agreement.
This requirement is formalized through a Participating Franchisee Agreement, indicating a structured relationship between the franchisee, Bonchon, and PepsiCo. This agreement covers all outlets owned, operated, managed, leased, franchised, or licensed by the franchisee under the Bonchon trademark within the United States. Therefore, Bonchon franchisees are contractually obligated to sell Pepsi products and are not permitted to sell Coca-Cola products.
Prospective franchisees should carefully review Exhibit B, which lists all outlets initially included within the scope of the agreement, to fully understand the implications of this beverage requirement for their specific locations.