If a Bonchon franchisee requests Pepsi-Cola to move equipment due to remodeling, is the franchisee responsible for reimbursing Pepsi-Cola's costs, and if so, within how many days of the invoice date?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If at any time during the Term subsequent to initial installation of any unit of Equipment and/or Packaged Products Equipment (e.g., as a result of an Outlet remodeling, internal redesign or reconfiguration, redeployment or reinstallation, etc.), Participating Franchisee requests that Pepsi-Cola disconnect, remove, relocate or reinstall Equipment and/or Packaged Products Equipment in, within or between its premises and affected Outlets (each an "Equipment Move"), then Participating Franchisee will notify Pepsi-Cola of such requests in writing and at least thirty (30) days in advance of any Equipment Move(s). Participating Franchisee will promptly reimburse Pepsi-Cola for any and all costs incurred by Pepsi-Cola in meeting Participating Franchisee's requirements, payable within thirty (30) days of the date of Pepsi-Cola's invoice for such Equipment Move(s).
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a Bonchon franchisee (referred to as a Participating Franchisee) requests Pepsi-Cola to disconnect, remove, relocate, or reinstall equipment due to remodeling or other reasons, the franchisee is responsible for reimbursing Pepsi-Cola for all costs incurred. This includes instances of outlet remodeling, internal redesign, reconfiguration, redeployment, or reinstallation of equipment. The franchisee must provide written notice to Pepsi-Cola at least 30 days in advance of any such equipment move.
The financial responsibility for the Bonchon franchisee includes promptly reimbursing Pepsi-Cola for all costs associated with meeting the franchisee's requirements for the equipment move. This means that Bonchon franchisees need to factor in potential remodeling costs, not just for construction but also for any required adjustments to Pepsi-Cola equipment.
The payment terms require the Bonchon franchisee to pay Pepsi-Cola within thirty (30) days of the date of Pepsi-Cola's invoice for such equipment move(s). This short payment window means franchisees must manage their cash flow effectively to cover these unexpected costs promptly. Failing to do so could potentially lead to penalties or impact the relationship with Pepsi-Cola, a key supplier.