What must a proposed supplier demonstrate to be approved by Bonchon?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Bonchon Restaurant, for which we do not designate a required source of supply. We will set forth such specifications in our Manuals or in other written notices we transmit to you. We may add to, modify or revoke our specifications in writing from time to time.
If we specify any particular source of supply for any particular non-proprietary product, service or equipment and you wish to propose an alternative source of supply, we will exercise our approval of your proposed alternative supply reasonably, in accordance with the following procedure.
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- You must submit a written request to us for approval of the supplier and then furnish us with the information, data and samples that we reasonably request;
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- The supplier must demonstrate to our reasonable satisfaction that it is able to supply the product, service or equipment to you meeting our specifications;
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- 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;
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- The proposed supplier must demonstrate to our reasonable satisfaction, following our inspection or other review, that it is in good standing in the business community in all respects; that the product, service or equipment meets or exceeds our specifications and standards for it in all respects; and, that the proposed supplier's manufacturing and distribution capabilities are sufficient to furnish you with the product, service or equipment in a consistently timely, sanitary, hygienic and cost-efficient fashion;
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- The supplier must be able to supply the particular non-proprietary product to franchisees at competitive prices;
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- 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; and,
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- 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.
Nothing in the foregoing shall be deemed to require us to approve any particular supplier or to require us to make available to prospective suppliers any standards, specifications, procedures or protocols that we, in our business judgment, deem confidential.
We reserve the right to test, analyze, inspect or randomly sample the product, service or equipment of any supplier you propose at your expense, whether or not we ultimately approve or reject the supplier. We will give you written notice of our approval or disapproval of your proposed supplier within 90 days
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee wishes to use an alternative supplier for non-proprietary products, services, or equipment, the proposed supplier must meet several requirements to gain Bonchon's approval. The franchisee must first submit a written request for approval, providing all reasonably requested information, data, and samples.
Specifically, the supplier must demonstrate its ability to consistently meet Bonchon's specifications for the product, service, or equipment. Bonchon or its agents must be allowed to inspect the supplier's facilities and test samples, with all associated costs borne by the franchisee or the supplier. The supplier must also prove it is in good standing within the business community, ensuring financial soundness and reliability.
Furthermore, the supplier needs to show that its manufacturing and distribution capabilities are sufficient to provide the product or service in a timely, sanitary, hygienic, and cost-efficient manner. The supplier must also offer competitive prices to Bonchon franchisees. Bonchon may also require the supplier to agree to additional requirements, including ongoing inspections with associated fees. These stipulations ensure that any approved supplier maintains Bonchon's standards for quality, reliability, and cost-effectiveness.
Bonchon retains the right to test, analyze, inspect, or randomly sample the product, service, or equipment of any supplier proposed by the franchisee, at the franchisee's expense, regardless of whether the supplier is ultimately approved. The cost of testing can range from $1,000 to $2,500, depending on the complexity of the testing required. Bonchon will provide written notice of approval or disapproval within 90 days. Even if a supplier is approved, Bonchon reserves the right to revoke that approval with written notice.