From whom must a Bonchon franchisee purchase proprietary sauces and Bonchon logoed packaging items?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must purchase proprietary and other designated products (currently Bonchon logoed packaging items, logo-imprinted paper goods, cooking utensils, sweet sugar, brushes, and our proprietary sauces, seasonings and spice blends) from the source that we designate. Currently, our designated supplier, Sysco Foodservice, is the only approved supplier of our (i) proprietary sauce (including any "limited time only sauce" that we may promote from time to time) and (ii) Bonchon logoed packaging items, but we may change the designated supplier(s) of our proprietary sauce and logoed packaging items from time to time in our Confidential Operations Manual. Bonchon LLC is currently the only approved supplier of the other designated products you are required to purchase.
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, franchisees are required to purchase proprietary sauces and Bonchon logoed packaging items from designated sources. Currently, Sysco Foodservice is the only approved supplier for these items, including any limited-time-only sauces. However, Bonchon LLC is the approved supplier for other designated products like logo-imprinted paper goods, cooking utensils, sweet sugar, brushes, seasonings, and spice blends. Bonchon retains the right to change the designated suppliers for proprietary sauces and logoed packaging items, with updates provided in the Confidential Operations Manual.
This requirement ensures consistency and quality control across all Bonchon locations. By mandating specific suppliers for key products, Bonchon aims to maintain uniform taste and branding. Franchisees must adhere to these designated suppliers to comply with the franchise agreement and operational standards.
For a prospective franchisee, this means they will not have the freedom to choose their own suppliers for these specific items. They must factor in the costs and terms associated with purchasing from Sysco Foodservice and Bonchon LLC when projecting their operating expenses. It is important to regularly consult the Confidential Operations Manual for any changes to approved suppliers, as Bonchon reserves the right to modify these designations.
During the fiscal year ended December 31, 2024, Bonchon LLC generated $732,228 in total revenue. It received $280,491 (or 38.3% of its total revenue) from the sale of proprietary sauce to franchisees and company-owned Restaurants and $107,387 (or 14.7% of its total revenue) from the sale of packaging items (including boxes, plastic bags, containers, lids and dividers) to franchisees and company-owned Restaurants.