Does Bonchon have a standard Pepsi-Cola Form of Participating Franchisee Agreement, and if so, where can I find it?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In January 2023, we entered into a beverage sales agreement with PepsiCo Sales, Inc. and Pepsi
Cola Advertising and Marketing Inc. (collectively referred to as "Pepsi-Cola"). Under that agreement, we agreed that Bonchon franchisees will be required to exclusively purchase and serve non-alcoholic beverages licensed by Pepsi-Cola and/or by the Pepsi/Lipton Tea Partnership ("Partnership") at the Restaurants. To assume this obligation, you must execute Pepsi-Cola's form of Participating Franchisee Agreement (a copy of which is attached as Exhibit I to this Disclosure Document). If you purchase a Restaurant from an existing franchisee that has yet to convert to exclusively purchasing and selling non-alcoholic beverages licensed by Pepsi-Cola and/or the Partnership, then you will have to undertake this obligation by entering into Pepsi-Cola's form of Participating Franchisee Agreement attached as Exhibit I to this Disclosure Document.
Source: Item 22 — CONTRACTS (FDD pages 91–92)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Bonchon has a beverage sales agreement with Pepsi-Cola. As a Bonchon franchisee, you are required to exclusively purchase and serve non-alcoholic beverages licensed by Pepsi-Cola and/or the Pepsi/Lipton Tea Partnership at your restaurant.
To fulfill this obligation, you must execute Pepsi-Cola's standard Participating Franchisee Agreement. A copy of this agreement is included as Exhibit I to the Disclosure Document. If you are purchasing a Bonchon restaurant from an existing franchisee who has not yet switched to exclusively selling Pepsi-Cola beverages, you will be required to enter into this agreement as well.
The agreement ensures that Bonchon franchisees adhere to the beverage requirements set by Bonchon and Pepsi-Cola, maintaining brand consistency and potentially benefiting from negotiated pricing or marketing support. Franchisees should carefully review Exhibit I to understand their obligations regarding beverage purchases and sales.