If Bonchon or its affiliates develop proprietary computer software in the future, is a franchisee required to use it?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
We or our affiliates do not currently have proprietary computer software that we require you to use. (While we require you to use the Computer and Point of Sale System and Other Technology in conjunction with software of third- party vendors we designate and with which we have negotiated pricing for your benefit, that associated software is not proprietary to us.) If we or our affiliates develop proprietary computer software in the future, you must use our proprietary computer software programs. Upon developing any such proprietary computer software, we reserve the right to require you to purchase same from us at our then-current rate. In addition, you will be required to pay for any future updates or revisions. We do not expect to increase our fees for updates and revisions beyond inflation in the applicable industry segment unless our costs increase due to shortages, catastrophes, strikes, Acts of God, etc. You must procure and install the Computer and Point of Sale System and Other Technology we require at each Restaurant. See Items 7 and 11.
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, if Bonchon or its affiliates develop proprietary computer software in the future, franchisees must use it. While Bonchon currently requires franchisees to use a Computer and Point of Sale System and Other Technology in conjunction with software of third-party vendors, this software is not proprietary to Bonchon.
Bonchon reserves the right to require franchisees to purchase the proprietary computer software from them at their then-current rate. Franchisees will also be required to pay for any future updates or revisions to the software. Bonchon does not expect to increase fees for updates and revisions beyond inflation in the applicable industry segment unless their costs increase due to shortages, catastrophes, strikes, or Acts of God.
This requirement ensures that all Bonchon locations operate on the same software platform, which can help maintain brand consistency and streamline operations. However, it also means that franchisees will be subject to any costs associated with purchasing, updating, and maintaining the software. Prospective franchisees should consider these potential costs when evaluating the overall investment required to open and operate a Bonchon franchise.