factual

Is a Bonchon franchisee required to participate in special promotion programs developed by the franchisor or its affiliates?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

You must, at your expense, participate in, and comply with the requirements of any special promotional programs that we (or our affiliates) may develop and implement (including, without limitation, any limited time only proprietary sauce promotions). You must purchase and maintain an inventory of the promotional products (including, without limitation, any of our limited time only proprietary sauces) being offered during Bonchon's special promotional program for the duration of such program. Your inventory of such promotional products must be sufficient to meet customer demand. Without limiting the generality of the foregoing, you acknowledge, understand and agree that in connection with any special promotion programs (including "limited time only" promotional sauce offerings) you will be required to purchase a minimum of one (1) case of limited time only sauce (which we may auto-ship to you) to satisfy customer demand for the "limited time only" sauce offering.

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 participate in special promotion programs. Bonchon franchisees must participate in any special promotional programs that Bonchon or its affiliates develop and implement. These programs may include limited-time proprietary sauce promotions.

As part of this participation, the franchisee is responsible for purchasing and maintaining sufficient inventory of the promotional products to meet customer demand for the duration of the promotional program. For example, franchisees may be required to purchase a minimum of one case of a limited-time-only sauce, which Bonchon may automatically ship to the franchisee, to ensure they can meet customer demand.

This requirement ensures brand consistency and aims to drive sales across all Bonchon locations. However, it also means that franchisees must be prepared to invest in the necessary inventory for these promotions and manage their stock effectively to avoid waste or shortages. Franchisees should factor in these promotional costs and inventory management requirements when assessing the financial viability of the franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.