If Bonchon institutes a cobranding program and provides written notice, what is a franchisee required to do?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon decides to implement a cobranding program, franchisees will be required to participate. Cobranding involves incorporating products or services under different trademarks into the Bonchon system, potentially requiring changes to the restaurant's building, premises, furniture, fixtures, equipment, signs, and trade dress.
Upon receiving written notice of a cobranding program, a Bonchon franchisee must promptly implement the program at their restaurant at the earliest commercially reasonable time. This includes executing any instruments required to implement the cobranding program.
However, the FDD stipulates that Bonchon will not increase a franchisee's Continuing Royalty, System Brand Fund Contribution, or local advertising expenditure obligations as a result of any cobranding program. This provides some financial protection to the franchisee, ensuring that the cost of implementing the program does not come with increased fees or contributions to Bonchon.