Under what conditions will Pepsi-Cola provide and install fountain dispensing equipment in a Bonchon outlet free of cost?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon execution of this Agreement or at such time as the useful life of Participating Franchisee's existing fountain beverage dispensing equipment in each Outlet expires, as determined by Pepsi-Cola in its sole discretion, or in the event of early replacement as described below, Pepsi-Cola will provide to and install in each Outlet with and with mutually agreeable fountain dispensing equipment free of cost and expense to be used exclusively for dispensing the Fountain Products (where permitted by applicable local law) ("Equipment"), provided, however, that where local law, rule or regulation prohibits uncompensated placement of fountain dispensing equipment by soft drink vendors, Pepsi-Cola will charge the minimum legal rental fee. At all times, legal title to the Equipment will belong to Pepsi-Cola. Pepsi-Cola shall provide such Equipment in like-new condition as determined solely by Pepsi-Cola. Participating Franchisee will cooperate with Pepsi-Cola in maintaining the Equipment in good working order throughout the Term, and Pepsi-Cola will provide maintenance in accordance with the Service Program set forth herein. For purposes of this Agreement, the term "Equipment" shall include any fountain dispensing equipment provided by Pepsi-Cola under the parties' prior agreement relating to Pepsi-Cola's beverages, if any.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Pepsi-Cola will provide and install fountain dispensing equipment in a Bonchon outlet at no cost to the franchisee under specific conditions. This arrangement is contingent upon the execution of an agreement between the franchisee and Pepsi-Cola.
Pepsi-Cola will provide and install fountain dispensing equipment when the useful life of the existing equipment expires, as determined solely by Pepsi-Cola. Additionally, Pepsi-Cola may provide the equipment in the event of an early replacement. The equipment is to be used exclusively for dispensing fountain products. However, if local laws prohibit uncompensated placement of fountain dispensing equipment by soft drink vendors, Pepsi-Cola will charge the minimum legal rental fee.
The equipment provided by Pepsi-Cola will be in like-new condition, as determined by Pepsi-Cola. The franchisee is responsible for cooperating with Pepsi-Cola to maintain the equipment in good working order throughout the term of the agreement, and Pepsi-Cola will provide maintenance according to their service program. Pepsi-Cola retains legal title to the equipment at all times.
This arrangement benefits Bonchon franchisees by reducing initial investment costs and ongoing maintenance expenses for beverage dispensing equipment. However, franchisees must adhere to Pepsi-Cola's requirements, including using the equipment exclusively for Pepsi-Cola products and maintaining the equipment in good condition.