Can Bonchon require a proposed supplier to comply with other requirements beyond demonstrating good standing and meeting specifications?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
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 o
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee proposes an alternative supplier for non-proprietary products, Bonchon can impose additional requirements beyond just demonstrating good standing and meeting specifications. Bonchon retains significant control over the supply chain to ensure consistency and quality across all franchise locations.
Specifically, Bonchon may require the proposed supplier to comply with other requirements that Bonchon deems appropriate. This gives Bonchon broad discretion in evaluating and approving suppliers. Bonchon also has the right to inspect the supplier's facilities and have samples tested at the franchisee's or supplier's expense. The supplier must also be able to supply products at competitive prices to all franchisees.
This process ensures that Bonchon can maintain its brand standards and protect its trade secrets. While franchisees have the option to propose alternative suppliers, they must be prepared to meet Bonchon's requirements and cover the associated costs for inspections and testing. This protects Bonchon's interests and ensures product quality and uniformity across all locations.