Does Bonchon require that the Participating Franchisee's execution, delivery, and performance of the agreement not violate any agreements with competitive beverage suppliers such as The Coca-Cola Company and/or Keurig Dr Pepper Inc.?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Pepsi-Cola will be the exclusive non-alcoholic beverage supplier to the Participating Franchisee during the Term, and except as provided below, the Products will be the exclusive beverage products of their respective types and categories sold, dispensed or otherwise made available, or in any way advertised, displayed, or promoted at or in connection with the Outlets by any method or through any medium whatsoever (including, without limitation, print, television, radio, internet, coupons, in-store displays and signage). In the event that Participating Franchisee determines to offer beverages in the Outlets beyond those listed in Section 7.2, such further beverages may only be Products which Pepsi-Cola or the Partnership offer for sale during the Term. Nothing herein will be construed to authorize Participating Franchisee to sell any beverage owned or manufactured by the Coca-Cola Company and its affiliates, bottlers, distributors, subsidiaries and joint ventures.
Notwithstanding the foregoing, Participating Franchisee may offer Dr Pepper (regular flavor only) on 1 valve of Equipment as a fountain beverage in the Outlets during the Term, provided the Participating Franchisee purchases its requirements of Permitted Product from the same source (foodservice distributor or local Bottler)
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon franchisees are required to adhere to specific beverage supply agreements that limit their ability to contract with competing beverage suppliers. Bonchon mandates that Pepsi-Cola be the exclusive non-alcoholic beverage supplier during the term of the agreement.
Specifically, Bonchon franchisees cannot sell, dispense, advertise, display, or promote any beverages manufactured by The Coca-Cola Company and its affiliates. This exclusivity extends to all methods and mediums of promotion, including print, television, radio, internet, coupons, in-store displays, and signage. However, there is a notable exception: franchisees are permitted to offer Dr Pepper (regular flavor only) on one valve of their equipment as a fountain beverage, provided they purchase it from the same source (foodservice distributor or local Bottler).
This requirement ensures that Bonchon restaurants primarily offer PepsiCo products, potentially impacting a franchisee's ability to cater to customers who prefer other brands. Franchisees must carefully consider this restriction and its potential effect on customer satisfaction and sales. It is important for prospective franchisees to understand the terms of the beverage agreement and how it aligns with their business goals and customer base.