Can Bonchon profit from the sale of proprietary products to its franchisees?

According to Bonchon's 2025 Franchise Disclosure Document, Bonchon can profit from the sale of proprietary products to its franchisees. The FDD states that franchisees must buy proprietary products from Bonchon, its affiliate, or designee. Bonchon (or their affiliates or designees) will sell proprietary products, equipment, or services to franchisees under terms they develop and advise franchisees of periodically.

This arrangement is common in franchising, allowing Bonchon to maintain quality control and brand consistency across all franchise locations. By requiring franchisees to purchase specific products and equipment from approved sources, Bonchon can ensure that all restaurants meet its standards.

For a prospective franchisee, this means that the cost of goods and supplies will include a profit margin for Bonchon or its affiliates. While this may increase operating expenses, it also provides the benefit of a consistent supply chain and potentially higher-quality products. Franchisees should carefully evaluate the pricing and terms of these required purchases to determine their impact on overall profitability.