Does Bonchon require that the Participating Franchisee's execution, delivery, and performance of the Pepsi-Cola agreement not violate any agreements with competitive beverage suppliers such as The Coca-Cola Company and/or Keurig Dr Pepper Inc.?

According to Bonchon's 2025 Franchise Disclosure Document, franchisees entering into an agreement with Pepsi-Cola must ensure that doing so does not violate any existing agreements with competing beverage suppliers. Specifically, the franchisee represents and warrants to Pepsi-Cola that their execution, delivery, and performance of the agreement will not violate any agreements with competitive beverage suppliers such as The Coca-Cola Company and/or Keurig Dr Pepper Inc., including their affiliates, bottlers, distributors, subsidiaries, and joint ventures.

This requirement protects Pepsi-Cola from potential legal issues that could arise if a Bonchon franchisee is already bound by an agreement to sell or promote the products of a competitor. It ensures that the franchisee is free to fully comply with the terms of the Pepsi-Cola agreement without conflicting with prior obligations.

For a prospective Bonchon franchisee, this means carefully reviewing any existing beverage supply agreements before signing the Pepsi-Cola agreement. Franchisees must disclose any potential conflicts and ensure they can legally fulfill the obligations to Pepsi-Cola. Failure to do so could result in a breach of contract with either Pepsi-Cola or the other beverage supplier, leading to potential legal and financial repercussions.