If Bonchon develops proprietary computer software, can Bonchon require franchisees to purchase it from them, and at what price?
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, Bonchon does not currently have proprietary computer software that franchisees are required to use. However, if Bonchon or its affiliates develop proprietary computer software in the future, franchisees must use it. Bonchon reserves the right to require franchisees to purchase the software from them at Bonchon's then-current rate.
In addition to the initial purchase, franchisees will be required to pay for any future updates or revisions to the software. Bonchon states that they do 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.
Franchisees are also required to procure and install the Computer and Point of Sale System and Other Technology that Bonchon requires at each restaurant. This is a common practice in franchising, as it allows the franchisor to maintain consistency and control over the brand's technology and operations.