Is a Bonchon franchisee required to participate in Bonchon's gift card and customer loyalty programs?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
You must participate in, and comply with the requirements of, any gift card, gift certificate, customer loyalty or retention program that we (or our affiliates) implement, at your expense, for all or part of our franchise system and shall sign the forms and take the other action that we require in order for you to participate in such programs. Without limitation, you must (at your expense) honor coupons, gift cards, gift certificates, loyalty reward redemptions or vouchers sold or distributed by other Restaurants and must utilize a vendor approved by us for gift card processing. You may not offer any coupon without our prior written approval. You must use our designated gift card service provider (currently, Paytronix) to participate in our gift card system. See Item 11. You must purchase all gift card supplies from our designated supplier.
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 participate in any gift card, gift certificate, customer loyalty, or retention programs that Bonchon or its affiliates implement. This participation is at the franchisee's expense. Franchisees must also sign required forms and take necessary actions to participate in these programs.
As part of this requirement, Bonchon franchisees must honor coupons, gift cards, gift certificates, loyalty reward redemptions, or vouchers sold or distributed by other Bonchon restaurants. They are also obligated to use a vendor approved by Bonchon for gift card processing and must purchase all gift card supplies from Bonchon's designated supplier. Currently, Paytronix is the designated gift card service provider.
Franchisees are prohibited from offering any coupons without prior written approval from Bonchon. This ensures that all promotional activities align with Bonchon's overall marketing strategy and prevents unauthorized discounts or offers that could negatively impact the brand or other franchisees. By mandating participation in these programs, Bonchon aims to create a unified customer experience and maintain brand consistency across all locations.