Is a Bonchon franchisee required to purchase new, upgraded, or substitute proprietary software?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In the future, we may develop or have developed proprietary software. You agree to use proprietary software and software support services that either we develop and provide or which are provided by a third-party supplier we designate, and you will execute any standard form software license agreement reasonably necessary to do so. You agree to purchase from us or our designee, as applicable, new, upgraded or substitute proprietary software whenever we determine to adopt them systemwide, at the prices and on the terms that we or such third-party vendor establish, but you will not be required to do so more than once in any calendar year. You will pay for new or updated programs and materials when you order them. (Franchise Agreement, Section 8.09)
We reserve the right to impose a Technology Fee of up to 1.0% of your monthly Gross Revenues, which will be commensurate with the expenses we or our affiliates incur in providing upgraded or new technology to you.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 45–60)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to purchase new, upgraded, or substitute proprietary software. Bonchon may develop proprietary software in the future, and franchisees must use both the proprietary software and support services that Bonchon develops or a third-party designates. Franchisees must also execute any software license agreement that is reasonably necessary.
Bonchon franchisees are obligated to purchase new, upgraded, or substitute proprietary software from Bonchon or its designee when Bonchon decides to adopt these systemwide. However, franchisees will not be required to do so more than once in any calendar year. The franchisee is responsible for paying for these new or updated programs and materials when they are ordered.
Bonchon also reserves the right to impose a Technology Fee of up to 1.0% of a franchisee's monthly Gross Revenues. This fee will be commensurate with the expenses Bonchon or its affiliates incur in providing upgraded or new technology to the franchisee.