Is the support described in the Participant Franchisee Beverage Sales Agreement for Bonchon franchisees in addition to, or in lieu of, other discounts, allowances, or rebates the franchisee might otherwise be entitled to?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Participating Franchisee will remain responsible for any applicable taxes, fees or other tax liability incurred in connection with Participating Franchisee's receipt of funding and/or Equipment and/or Packaged Products Equipment provided by Pepsi-Cola under this Agreement. In addition, Participating Franchisee will neither assess nor impose upon Pepsi-Cola or the Bottlers any common area maintenance fees, taxes or other charges based on occupation of the space allocated to Equipment and/or Packaged Products Equipment, nor with respect to the ownership or usage thereof. Upon execution of this Agreement and/or upon request by Pepsi-Cola, Participating Franchisee agrees to accurately complete a Form W-9 (or Form W-8 to the extent applicable) and return such form to Pepsi-Cola. Pepsi-Cola has and reserves the right to subject payments due to Participating Franchisee under this Agreement to the extent required by applicable Internal Revenue Service regulations relating to backup federal tax withholding.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, the Participating Franchisee will remain responsible for any applicable taxes, fees, or other tax liability incurred in connection with the receipt of funding, equipment, and packaged products equipment provided by Pepsi-Cola under the agreement. Additionally, the franchisee cannot assess or impose any common area maintenance fees, taxes, or other charges on Pepsi-Cola or the Bottlers based on the space allocated to the equipment or the ownership/usage thereof.
The agreement requires the Participating Franchisee to accurately complete a Form W-9 (or Form W-8, if applicable) upon execution of the agreement or upon request by Pepsi-Cola. Pepsi-Cola retains the right to subject payments due to the franchisee under the agreement to backup federal tax withholding as required by IRS regulations.
This section of the FDD outlines the tax responsibilities and requirements associated with the beverage sales agreement, ensuring that franchisees understand their obligations regarding taxes and fees related to the equipment and products provided by Pepsi-Cola. It does not specify whether the support is in addition to, or in lieu of, other discounts, allowances, or rebates.