What is Bonchon's obligation regarding the maintenance of the fountain dispensing equipment provided by Pepsi-Cola?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Participating Franchisee will cooperate with Pepsi-Cola in maintaining the Equipment in good working order throughout the Term, and Pepsi-Cola will provide maintenance in accordance with the Service Program set forth herein.
Pepsi-Cola will cause service to be provided to the Equipment through Bottlers or such other service providers as Pepsi-Cola may designate. Each calendar year, Participating Franchisee will be entitled, at no charge and on a per Outlet basis, to a maximum of three (3) service calls for Equipment. Participating Franchisee shall not be charged the costs of any and all parts that may be required in connection with the operation of the Equipment. Moreover, all service and maintenance calls in excess of those specified above will be charged to Participating Franchisee at Pepsi-Cola's prevailing rates provided, however, that any further water filter replacement cartridges will be charged to Participating Franchisee directly by the service provider at its respective prevailing rates.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon franchisees, referred to as 'Participating Franchisee,' must cooperate with Pepsi-Cola to maintain fountain beverage dispensing equipment in good working order throughout the term of their agreement. Pepsi-Cola will provide maintenance according to a specified service program.
Each Bonchon franchisee is entitled to a maximum of three service calls per outlet each calendar year at no charge for equipment maintenance. The franchisee will not be charged for any parts required for the equipment's operation. However, the franchisee will be charged Pepsi-Cola's prevailing rates for any service and maintenance calls exceeding the three free calls. Additionally, the franchisee will be charged directly by the service provider for any further water filter replacement cartridges at the service provider's prevailing rates.
This arrangement means Bonchon franchisees need to budget for potential maintenance costs beyond the three free service calls per year, and should factor in the cost of water filter replacements. Franchisees should also ensure they promptly report any equipment issues to minimize downtime and potential additional costs. Maintaining the equipment in good condition is a shared responsibility, with Bonchon franchisees needing to cooperate with Pepsi-Cola to ensure smooth operations.