Under what conditions will Pepsi-Cola adjust fixed, advanced, or guaranteed funding for a Bonchon franchisee?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
If Participating Franchisee or more than 10% of its Outlets are temporarily closed for more than thirty (30) days consecutively during the Term, Participating Franchisee and Pepsi-Cola agree that any fixed, advanced, or guaranteed funding will be adjusted proportionate with the period of time during which Participating Franchisee or its Outlets are closed. Notwithstanding the foregoing, Pepsi-Cola will not prorate fixed, advanced, or guaranteed funding during seasonal Outlet closures acknowledged with Pepsi-Cola's prior written approval, which shall not be unreasonably withheld.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Pepsi-Cola may adjust fixed, advanced, or guaranteed funding provided to a Bonchon franchisee under specific circumstances related to outlet closures.
Specifically, if a Bonchon franchisee, or more than 10% of its outlets, are temporarily closed for more than thirty consecutive days during the term of the agreement with Pepsi-Cola, any fixed, advanced, or guaranteed funding will be adjusted proportionally to the period the franchisee or its outlets are closed. This means that if a franchisee's business is disrupted for an extended period, the financial support from Pepsi-Cola will be reduced to reflect the decreased need for it.
However, Pepsi-Cola will not prorate fixed, advanced, or guaranteed funding during seasonal outlet closures if they have given prior written approval, and such approval will not be unreasonably withheld. This provision offers some flexibility for Bonchon franchisees who may experience predictable seasonal slowdowns, allowing them to maintain their funding if they plan for and communicate these closures with Pepsi-Cola in advance.