During the Bonchon transition period after termination or expiration of the agreement with Pepsi-Cola, what is the maximum number of days Pepsi-Cola and the Bottlers may continue to provide products to the Participating Franchisee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon termination or expiration of this Agreement, if Participating Franchisee has not entered into a further agreement with Pepsi-Cola for the purchase of Products, Pepsi-Cola and the Bottlers may, upon request by the Participating Franchisee, continue to provide Products to the Participating Franchisee to ensure the uninterrupted supply of beverages, for a transition period not to exceed one hundred twenty (120) days (unless otherwise mutually agreed upon) following expiration or termination of the Agreement (the "Transition Period"). During the Transition Period, the parties will continue to perform pursuant to the terms and conditions of this Agreement, except that Participating Franchisee shall not be required to comply with any exclusivity requirements set forth herein and Pepsi-Cola shall not be obligated to provide any funding or other benefits as set forth in this Agreement. During the Transition Period, Participating Franchisee will provide Pepsi-Cola
and/or the Bottlers with reasonable access to the Outlets, free from any claims of trespass and on a mutually agreed upon schedule, for the purposes of removing Equipment and/or equipment provided by Bottlers for the distribution and display of Packaged Products. For clarity purposes, although Participating Franchisee shall no longer be required to comply with the exclusivity requirements of this Agreement, Participating Franchisee acknowledges and agrees that, except as specifically agreed by Pepsi-Cola in writing, Equipment and/or Packaged Products Equipment, may be used exclusively to display and/or dispense Pepsi-Cola beverage products, even during the Transition Period where permitted by applicable local law.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, following the termination or expiration of the agreement with Pepsi-Cola, Pepsi-Cola and its bottlers may continue to supply products to a Bonchon franchisee for a transition period. This transition period is designed to ensure an uninterrupted supply of beverages to the franchisee's outlets.
The maximum length of this transition period is 120 days, unless both Bonchon and Pepsi-Cola mutually agree to a different duration. During this period, the franchisee is no longer bound by exclusivity requirements, meaning they are not obligated to exclusively sell Pepsi-Cola products. However, Pepsi-Cola is also not obligated to provide any funding or other benefits as outlined in the agreement during this time.
Even though the franchisee is not required to comply with exclusivity requirements during the transition period, any equipment provided by Pepsi-Cola or its bottlers may still be used exclusively for displaying and dispensing Pepsi-Cola beverage products, unless Pepsi-Cola agrees otherwise in writing and where permitted by local law. This ensures that while the franchisee can explore other beverage options, Pepsi-Cola's equipment is reserved for its own products.