For Bonchon, what is Olo's responsibility regarding payments or disbursements to Authorized Operators for transactions conducted at their locations?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
hat is accessing or using the Services ("Authorized Operator").
On XX/XXXXX, Olo, Inc. ("Olo") and Bonchon Franchise LLC ("Customer") entered into a Master Services Agreement (as amended, supplemented or otherwise modified from time to time, the "Master Services Agreement"). Olo and Customer have also entered into one or more Order Forms (as amended, supplemented or otherwise modified from time to time, each an "Order Form" and, collectively with the Master Services Agreement, the "Agreement") in connection with Olo's provision of Services (as defined in the Agreement) to Customer and its Authorized Operators.
Customer desires to enable Authorized Operator to use the Services described in the Agreement and for Olo to bill Authorized Operator directly with respect to fees and charges incurred in connection with Authorized Operator's use of the Services. Authorized Operator's access to and use of the Service is conditioned on its acceptance of and compliance with these AO T&Cs. By accessing or using the Services, Authorized Operator agrees to be bound by these AO T&Cs.
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- Any capitalized terms used but not defined herein shall have the meanings ascribed to them pursuant to the Agreement. Any additional or inconsistent terms on any other document shall be null and void.
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- Customer has instructed Olo in one or more Order Forms to (a) invoice Authorized Operator for any fees or charges (the "Authorized Operator Owed Amounts") under the Agreement that are specified by the Customer as payable by the Authorized Operator or if not specified, (i) charged on a per location or per transaction/order/unit basis, and (ii) applicable to the use of the Services by the Authorized Operator or by locations operated by the Authorized Operator (including any fees or charges associated with transactions/orders/units conducted with locations owned or operated by the Authorized Operator); and (b) make payments or disbursements to Authorized Operator for any disbursements associated with use of the Services by the Authorized Operator or by transactions/orders/units conducted with locations owned or operated by the Authorized Operator (the "Authorized Operator Disbursement Amounts").
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- Customer will or has provided copies of the Agreement and/or information with respect to Services applicable to Authorized Operator and amounts payable therefor to Authorized Operator and shall be solely responsible for notifying Authorized Operator of any future modifications to the Agreement (including pricing updates and changes with respect to Services).
- 4. Olo agrees to accept payments by Authorized Operator of the Authorized Operator Owed Amounts on Customer's behalf and make payment or disbursements to Authorized Operators for the Authorized Operator Disbursement Amounts.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Olo, Inc. has specific responsibilities regarding payments to Bonchon franchisees, referred to as "Authorized Operators," for transactions processed through Olo's services. Bonchon has instructed Olo to handle two key financial flows: invoicing franchisees for fees and charges associated with their use of Olo's services, and making payments or disbursements to franchisees related to their use of these services or transactions at their locations. This arrangement is formalized through a Master Services Agreement and associated Order Forms between Olo and Bonchon.
Olo is obligated to accept payments from Bonchon franchisees for the amounts they owe for using Olo's services, and to make payments or disbursements to these franchisees as specified in the agreement. Bonchon considers Olo to have fulfilled its payment obligations to the franchisees once these payments or disbursements have been made. This means that Bonchon franchisees will receive payments directly from Olo for transactions processed through Olo's platform, streamlining the financial relationship between the franchisee, the franchisor, and the technology service provider.
However, Bonchon retains primary liability for the amounts franchisees owe to Olo. If a franchisee fails to pay the invoiced amounts, Olo has the right to seek collection from either the franchisee or Bonchon. Franchisees are also required to keep their billing and contact information up to date with Olo, including bank account details for Electronic Funds Transfer (EFT) billing. If Olo Pay is not the payment processor, franchisees must activate necessary services with their payment processors to ensure they receive payments for orders. This highlights the importance of franchisees maintaining accurate and current information with Olo to ensure smooth and timely payments.