Under the Bonchon franchise agreement, what payment methods are franchisees required to use when making payments to Bonchon, and does Bonchon reserve the right to change these methods?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition to all other payments under this Agreement, you agree to pay us (or our affiliates) immediately upon demand:
8.03 Modifications to the Bonchon System
In the exercise of our sole business judgment, we may from time to time modify any components of the Bonchon System and requirements applicable to you by means of Supplements to the Manuals or otherwise, including, but not limited to, altering the products, services, programs, methods, standards, accounting and computer systems, forms, policies and procedures of the Bonchon System; adding to, deleting from or modifying the products and services which your franchised Business is authorized and required to offer; modifying or substituting the equipment, signs, trade dress and other Restaurant characteristics that you are required to adhere to (subject to the limitations set forth in this Agreement); requirements pertaining to capturing and relaying to us customer information and data; and, changing, improving, modifying or substituting for the Proprietary Marks. For example, we may require you to institute drive-through and/or delivery services at and/or from your Restaurant. If you are operating a Remote Kitchen Restaurant, we may require that you comply with operating standards different from those we prescribe for Dine-In, Fast Casual and Delivery and Carryout Only Restaurants (subject to any restrictions, imposed on you by the lease agreement, occupancy agreement, or other agreement under which you have the right to possess and operate the Bonchon Business at the Remote Kitchen location), including, without limitation, (i) implementing different hours of operation; and (ii) using vendors and/or paying for technologies and services that are not standard for Dine-In, Fast Casual and Delivery and Carryout Restaurants. You agree to implement any such System modifications as if they were part of the System at the time you signed this Agreement.
You acknowledge that because uniformity under many varying conditions may not be possible or practical, we reserve the right to materially vary our standards or franchise agreement terms for any franchised Bonchon Business, based on the timing of the grant of the franchise, the peculiarities of the particular territory or circumstances, business potential, population, existing business practices, other non-arbitrary distinctions or any other condition which we consider important to the successful operation of the franchised Bonchon Business. You will have no right to require us to disclose any variation or to grant the same or a similar variation to you.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
Based on the 2025 Bonchon Franchise Disclosure Document, the franchisee agrees to pay Bonchon or its affiliates immediately upon demand, in addition to all other payments under the agreement. The FDD also states that Bonchon may modify any components of the Bonchon System and requirements applicable to the franchisee, including accounting and computer systems, by means of Supplements to the Manuals or otherwise.
Bonchon also retains the right to materially vary its standards or franchise agreement terms for any franchised Bonchon Business, based on the timing of the grant of the franchise, the peculiarities of the particular territory or circumstances, business potential, population, existing business practices, other non-arbitrary distinctions or any other condition which Bonchon considers important to the successful operation of the franchised Bonchon Business.
While the FDD excerpt confirms that franchisees are obligated to make payments to Bonchon and that Bonchon can modify the Bonchon system, it does not explicitly state the required payment methods or whether Bonchon reserves the right to change these methods. A prospective franchisee should seek clarification from Bonchon regarding acceptable payment methods and Bonchon's ability to alter these methods during the franchise term.