What steps must a Bonchon franchisee take to get approval for a new supplier?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Bonchon Restaurant, for which we do not designate a required source of supply. We will set forth such specifications in our Manuals or in other written notices we transmit to you. We may add to, modify or revoke our specifications in writing from time to time.
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 our ability to conduct continuing
- inspections and, in connection therewith, charge reasonable continuing inspection fees and administrative costs; and,
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- 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.
Nothing in the foregoing shall be deemed to require us to approve any particular supplier or to require us to make available to prospective suppliers any standards, specifications, procedures or protocols that we, in our business judgment, deem confidential.
We reserve the right to test, analyze, inspect or randomly sample the product, service or equipment of any supplier you propose at your expense, whether or not we ultimately approve or reject the supplier. We will give you written notice of our approval or disapproval of your proposed supplier within 90 days.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, if Bonchon specifies a particular source of supply for a non-proprietary product, service, or equipment, a franchisee can propose an alternative source of supply. Bonchon will then exercise its approval of the proposed alternative supply reasonably.
Bonchon reserves the right to test, analyze, inspect, or randomly sample the product, service, or equipment from any supplier the franchisee proposes. The franchisee will bear the expense of this process, regardless of whether Bonchon ultimately approves or rejects the supplier. Bonchon will provide written notice of approval or disapproval within 90 days. The cost to the franchisee for testing ranges from $1,000 to $2,500, depending on the nature and complexity of the required testing. If Bonchon revokes approval of a supplier, they will provide written notice to the franchisee.
Bonchon may be an approved source of supply for any non-proprietary product, service, or equipment that franchisees are required to purchase. However, franchisees are under no obligation to purchase any non-proprietary items from Bonchon. Bonchon determines the prices for any such product, service, or equipment and sets them forth at the time of sale in their Manuals or otherwise. Bonchon reserves the right to earn a profit from selling any and all such goods and services, whether proprietary or non-proprietary.
Bonchon and/or its affiliates may derive revenue from suppliers that they designate, approve, or recommend for Bonchon Restaurants. This revenue may be in the form of promotional allowances, volume discounts, commissions, other discounts, performance payments, signing bonuses, rebates, marketing and advertising allowances, free products, and other economic benefits and payments. All amounts received from suppliers will be Bonchon's and its affiliates' exclusive property, which they may retain and use without restriction for any purposes they deem appropriate. Any products or services that Bonchon or its affiliates sell directly to the franchisee may be sold at prices exceeding their costs.