Regarding the Bonchon OLO Franchisee Onboarding Agreement, what is the Participating Franchisee prohibited from assessing or imposing upon Pepsi-Cola or the Bottlers?

According to Bonchon's 2025 Franchise Disclosure Document, a Participating Franchisee under the OLO Franchisee Onboarding Agreement is prohibited from assessing or imposing certain fees and charges on Pepsi-Cola or its Bottlers. Specifically, the franchisee cannot impose common area maintenance fees, taxes, or other charges related to the space occupied by Pepsi-Cola's equipment or packaged products equipment, nor can they impose charges related to the ownership or usage of that equipment. This condition is part of the agreement between Bonchon franchisees and Pepsi-Cola.

This provision ensures that Pepsi-Cola and its Bottlers are not subject to unexpected or additional costs related to the placement and operation of their equipment within the Bonchon franchise location. By preventing franchisees from levying such fees, the agreement aims to maintain a predictable cost structure for Pepsi-Cola, which likely facilitates the provision of equipment and products to the franchise.

For a prospective Bonchon franchisee, this means they must be aware of this restriction when negotiating lease agreements or managing their operating expenses. They cannot rely on charging Pepsi-Cola or its Bottlers for common area maintenance or other occupancy-related fees as a source of revenue. This could impact the franchisee's financial planning and budgeting, as they need to account for these costs without the ability to pass them on to Pepsi-Cola.

Overall, this clause in the Bonchon OLO Franchisee Onboarding Agreement highlights the importance of understanding all aspects of the agreements with suppliers and the potential impact on the franchisee's financial responsibilities and revenue streams.