Is a Bonchon franchisee required to purchase poultry and other commodities from suppliers designated by Bonchon if purchase arrangements are negotiated on a regional or national basis?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
We may periodically negotiate purchase arrangements with one or more suppliers on a regional or national basis to supply poultry and other commodities to franchisees at a set price, in which case you must purchase such products from the supplier(s) that we designate. Currently, we have negotiated distribution agreements with our suppliers for the purchase of food, paper disposables, packaging items, and Ecolab cleaning chemicals. You must purchase such products from our designated supplier(s) in accordance with the terms (including, the price terms) we negotiated.
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, Bonchon franchisees are required to purchase poultry and other commodities from suppliers designated by Bonchon if purchase arrangements are negotiated on a regional or national level. Bonchon may periodically negotiate these purchase arrangements with suppliers to supply poultry and other commodities to franchisees at a set price. In these instances, franchisees must purchase such products from the supplier(s) that Bonchon designates.
Currently, Bonchon has distribution agreements with suppliers for food, paper disposables, packaging items, and Ecolab cleaning chemicals. Franchisees must purchase these products from Bonchon's designated suppliers, in accordance with the negotiated terms, including price.
Bonchon also requires franchisees to purchase proprietary and other designated products from sources it designates. These products currently include Bonchon logoed packaging items, logo-imprinted paper goods, cooking utensils, sweet sugar, brushes, and Bonchon's proprietary sauces, seasonings, and spice blends. Sysco Foodservice is currently the only approved supplier of Bonchon's proprietary sauce and Bonchon logoed packaging items, while Bonchon LLC is the only approved supplier of the other designated products franchisees are required to purchase. Franchisees must also exclusively purchase their dishwasher (if operating a Dine-In Restaurant) from Ecolab Inc. and Ecolab cleaning and sanitation chemicals directly from Ecolab or one of Bonchon's designated regional suppliers.