Under what conditions can a Bonchon franchisee purchase Dr Pepper from a third-party foodservice distributor instead of the local bottler?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, Participating Franchisee may offer Dr Pepper (regular flavor only) on 1 valve of Equipment as a fountain beverage in the Outlets during the Term, provided the Participating Franchisee purchases its requirements of Permitted Product from the same source (foodservice distributor or local Bottler)
as the Participating Franchisee purchases the Fountain Products. Notwithstanding the foregoing, if the Permitted Product is not available from the local Bottler, Participating Franchisee may purchase its requirements of Permitted Product from a third-party foodservice distributor, even if Participating Franchisee purchases Fountain Products from the local Bottler ("Permitted Product"). Purchases of the Permitted Product shall not count towards any funding or other obligations of Pepsi-Cola and shall not count towards any volume/Gallon commitments or thresholds that may be set forth herein.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, a franchisee, referred to as a Participating Franchisee, can offer Dr Pepper (regular flavor only) on one valve of their equipment as a fountain beverage. Generally, the franchisee must purchase Dr Pepper from the same source (either a foodservice distributor or a local bottler) from which they purchase their other fountain products.
However, there is an exception to this rule. If the Dr Pepper product is not available from the local bottler, the Bonchon franchisee is permitted to purchase their Dr Pepper requirements from a third-party foodservice distributor. This is allowed even if the franchisee obtains their other fountain products from the local bottler. The document refers to Dr Pepper in this context as "Permitted Product."
It is important to note that any purchases of Dr Pepper (the Permitted Product) from a third-party distributor will not count towards any funding or other obligations of Pepsi-Cola. Additionally, these purchases will not be included in any volume or gallon commitments or thresholds that may be outlined in the agreement. This exception provides flexibility for Bonchon franchisees in sourcing Dr Pepper while maintaining the overall beverage supply agreements.