factual

When seeking approval for a new supplier for Bonchon, what must a franchisee initially submit to Bonchon?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

rnative supplier if that supplier meets our criteria. To obtain our written approval for the alternative supplier:

  • You must submit a written request to us for approval of the supplier.
  • The supplier must meet our specifications and quality control standards to our reasonable satisfaction.
  • 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.
  • The supplier must be able to supply the particular non-proprietary product to franchisees at competitive prices.
  • 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
  • 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.

We may test, at your expense, the product or service of any supplier you propose, whether or not the supplier is then approved by us. We will give you notice of our approval or disapproval of the supplier within 90 days of our receipt of all the information we need to evaluate the product, service or supplier you propose. If we test the product or service, the cost to you of testing will range from $1,000 to $2,500, depending on the nature and complexity of the testing necessary for the product or service. If we revoke approval of any supplier, we will

Source: Item 8 — RESTRICTIONS ON SOURCES OF PRODUCTS AND SERVICES (FDD pages 37–42)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, if a franchisee wants to use an alternative supplier, they must first submit a written request to Bonchon for approval of the supplier. The alternative supplier must meet Bonchon's specifications and quality control standards to Bonchon's reasonable satisfaction.

Bonchon or its agents must be permitted to inspect the proposed supplier's facilities and have samples delivered for testing, with all expenses borne by the franchisee or the proposed supplier. The supplier must also be able to supply the particular non-proprietary product to franchisees at competitive prices. Bonchon may also require the proposed supplier to comply with other requirements, including ongoing inspections and associated fees.

The supplier must demonstrate that it is in good standing in the business community for financial soundness and reliability of its product or service. Bonchon will provide notice of approval or disapproval within 90 days of receiving all necessary information. Testing costs for the product or service will range from $1,000 to $2,500, depending on the nature and complexity of the testing.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.