Is a Bonchon franchisee required to use proprietary software and software support services?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
the System, this Agreement, the Manuals and any Supplements to the Manuals may damage the reputation and goodwill enjoyed by
the Bonchon network and the Proprietary Marks.
8.03 Modifications to the Bonchon System
In the exercise of our sole business judgment, we may from time to time modify any components of the Bonchon System and requirements applicable to you by means of Supplements to the Manuals or otherwise, including, but not limited to, altering the products, services, programs, methods, standards, accounting and computer systems, forms, policies and procedures of the Bonchon System; adding to, deleting from or modifying the products and services which your franchised Business is authorized and required to offer; modifying or substituting the equipment, signs, trade dress and other Restaurant characteristics that you are required to adhere to (subject to the limitations set forth in this Agreement); requirements pertaining to capturing and relaying to us customer information and data; and, changing, improving, modifying or substituting for the Proprietary Marks. For example, we may require you to institute drive-through and/or delivery services at and/or from your Restaurant. If you are operating a Remote Kitchen Restaurant, we may require that you comply with operating standards different from those we prescribe for Dine-In, Fast Casual and Delivery and Carryout Only Restaurants (subject to any restrictions, imposed on you by the lease agreement, occupancy agreement, or other agreement under which you have the right to possess and operate the Bonchon Business at the Remote Kitchen location), including, without limitation, (i) implementing different hours of operation; and (ii) using vendors and/or paying for technologies and services that are not standard for Dine-In, Fast Casual and Delivery and Carryout Restaurants. You agree to implement any such System modifications as if they were part of the System at the time you signed this Agreement.
You acknowledge that because uniformity under many varying conditions may not be possible or practical, we reserve the right to materially vary our standards or franchise agreement terms for any franchised Bonchon Business, based on the timing of the grant of the franchise, the peculiarities of the particular territory or circumstances, business potential, population, existing business practices, other non-arbitrary distinctions or any other condition which we consider important to the successful operation of the franchised Bonchon Business. You will have no right to require us to disclose any variation or to grant the same or a similar variation to you.
8.04 Cobranding
We may determine from time to time to incorporate in the Bonchon System products or services which we either develop or otherwise obtain rights to, which are offered and sold under names, trademarks and/or service marks other than the Proprietary Marks and which your Bonchon Business, along with other Bonchon Businesses, will be required to offer and sell. This activity, referred to as "cobranding", may involve changes to the Proprietary Marks and may require you to make modifications to your Restaurant's building and premises and the furniture, fixtures, equipment, signs and trade dress of your Restaurant. If you receive written notice that we are instituting a cobranding program, you agree promptly to implement that program at your Bonchon Restaurant at the earliest commercially reasonable time and to execute any and all instruments required to do so. Under no circumstance will any cobranding program increase your Continuing Royalty, System Brand Fund Contribution or local advertising expenditure obligations under this Agreement.
8.05 Compliance with Laws, Rules and Regulations
You agree to adhere to the highest standards of honesty, integrity and fair dealing in all dealings with the public and to operate your Business in strict compliance with all laws, rules, regulations, ordinances, policies and procedures of any federal, state, county, municipal or local governmental or quasi-governmental agency, commission and/or authority which govern the construction or any element of the operation of your franchised Bonchon Restaurant and Business.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon may modify the accounting and computer systems that franchisees are required to use. These modifications are implemented through supplements to the manuals or other means. Franchisees agree to implement these system modifications as if they were part of the system at the time they signed the agreement.
Bonchon franchisees are required to sell all products, services, and programs that are part of the Bonchon system, including any that Bonchon incorporates into the system in the future. However, this is subject to local laws or regulations, or if Bonchon grants written approval to exclude a product, service, or program. Franchisees cannot sell any product, service, or program that is not part of the Bonchon System or that Bonchon deletes from the System. Depending on the type of restaurant a franchisee operates, there may be limitations on which products, services, and programs they may offer and sell.
Bonchon franchisees must purchase or lease certain proprietary products, supplies, equipment, materials, uniforms, and services used, offered, or sold at the Bonchon Restaurant. These items comprise a part of the Bonchon System and were developed by, are proprietary to, or kept secret by Bonchon or its affiliates. Bonchon imposes this requirement to advance uniformity of the Bonchon Restaurant concept and quality and to protect its trade secrets, which are of the essence to the Bonchon System and the agreement.
Bonchon may enter into systemwide supply contracts for all or a subset of Bonchon Businesses situated within one or more geographic regions. These contracts may include vendors of products, services, or equipment that all company-owned and franchised Bonchon Restaurant Businesses in a geographic area will be required to purchase, use, or sell. If Bonchon does so, then immediately upon notification, the franchisee, Bonchon, and all other Bonchon Businesses in the geographic area must purchase the specified product, service, or equipment only from the designated supplier.