factual

How often is a Bonchon franchisee required to purchase new, upgraded, or substitute proprietary software?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

will execute any standard form software license agreement reasonably necessary to do so. You agree to purchase from us or our designee, as applicable, new, upgraded or substitute proprietary software whenever we determine to adopt them systemwide, at the prices and on the terms that we or such third-party vendor establish, but you will not be required to do so more than once in any calendar year. You will pay for new or updated programs and materials when you order them. (Franchise Agreement, Section 8.09)

We reserve the right to impose a Technology Fee of up to 1.0% of your monthly Gross Revenues, which will be commensurate with the expenses we or our affiliates incur in providing upgraded or new technology to you.

Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 45–60)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, franchisees are required to purchase new, upgraded, or substitute proprietary software whenever Bonchon determines to adopt them systemwide. However, Bonchon states that franchisees will not be required to do so more than once in any calendar year. The franchisee is responsible for paying for these new or updated programs and materials when they order them.

Bonchon also reserves the right to impose a Technology Fee of up to 1.0% of a franchisee's monthly Gross Revenues. This fee is intended to cover the expenses Bonchon or its affiliates incur in providing upgraded or new technology to franchisees.

Bonchon franchisees must also maintain their Computer and Point of Sale System and Other Technology in good repair and are required to pay maintenance and support fees to the suppliers, which will cost approximately between $1,000 and $3,000 per month. This estimate covers the costs of technology leases, SaaS charges and monthly licensing and subscription fees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.