What is the process for a Bonchon franchisee to request approval of a supplier if they are not satisfied with the approved suppliers listed by the franchisor (Item 8)?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
our Manuals or other written notices to franchisees.
We do not maintain written criteria for approving suppliers, and thus these criteria are not available to you or your proposed supplier. If we name a supplier for a product or service, we may in our business judgment (but we have no obligation to do so) permit you to contract with an alternative supplier if that supplier meets our criteria. To obtain our written approval for the alternative supplier:
- You must submit a written request to us for approval of the supplier.
- The supplier must meet our specifications and quality control standards to our reasonable satisfaction.
- We or our agents must have the right, and must be permitted, to inspect the proposed supplier's facilities and to have samples from the supplier delivered either to us, an independent laboratory or another designee for testing, all at your and/or the proposed supplier's expense.
- The supplier must be able to supply the particular non-proprietary product to franchisees at competitive prices.
- We may require that the proposed supplier also agree to comply with such other requirements we may deem appropriate, including our ability to conduct continuing inspections and, in connection therewith, charge reasonable continuing inspection fees and administrative costs
- The supplier must demonstrate to our reasonable satisfaction that it is in good standing in the business community for financial soundness and reliability of its product or service.
We may test, at your expense, the product or service of any supplier you propose, whether or not the supplier is then approved by us. We will give you notice of our approval or disapproval of the supplier within 90 days of our receipt of all the information we need to evaluate the product, service or supplier you propose. If we test the product or service, the cost to you of testing will range from $1,000 to $2,500, depending on the nature and complexity of the testing necessary for the product or service. If we revoke approval of any supplier, we will
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, while Bonchon does not maintain written criteria for approving suppliers, a franchisee can request approval for an alternative supplier if the supplier meets Bonchon's criteria. To initiate this process, the franchisee must submit a written request to Bonchon for approval of the alternative supplier.
The prospective supplier must meet Bonchon's specifications and quality control standards to Bonchon's reasonable satisfaction. Bonchon or its agents must be permitted to inspect the supplier's facilities and receive samples for testing, with all associated expenses borne by the franchisee or the proposed supplier. Additionally, the supplier must be able to provide the particular non-proprietary product to franchisees at competitive prices and demonstrate financial soundness and reliability within the business community.
Bonchon may also require the proposed supplier to comply with other requirements, including ongoing inspections with associated fees. Bonchon will provide written notice of approval or disapproval within 90 days of receiving all necessary information. If Bonchon tests the supplier's product or service, the franchisee will bear the cost, ranging from $1,000 to $2,500 depending on the complexity of the testing. Bonchon retains the right to revoke approval of any supplier, providing written notice to franchisees.