factual

Under the Bonchon service program, who directly charges the Participating Franchisee for any further water filter replacement cartridges?

Bonchon Franchise · 2025 FDD

Answer from 2025 FDD Document

Pepsi-Cola will cause service to be provided to the Equipment through Bottlers or such other service providers as Pepsi-Cola may designate. Each calendar year, Participating Franchisee will be entitled, at no charge and on a per Outlet basis, to a maximum of three (3) service calls for Equipment. Participating Franchisee shall not be charged the costs of any and all parts that may be required in connection with the operation of the Equipment. Moreover, all service and maintenance calls in excess of those specified above will be charged to Participating Franchisee at Pepsi-Cola's prevailing rates provided, however, that any further water filter replacement cartridges will be charged to Participating Franchisee directly by the service provider at its respective prevailing rates.

Source: Item 23 — RECEIPTS (FDD pages 92–536)

What This Means (2025 FDD)

According to Bonchon's 2025 Franchise Disclosure Document, Participating Franchisees are enrolled in a service program managed by Pepsi-Cola for equipment maintenance. Under this program, Bonchon franchisees are entitled to a maximum of three service calls per outlet each calendar year at no charge. These service calls cover the costs of any parts required for the equipment's operation. However, any service and maintenance calls exceeding the three free calls will be charged to the franchisee at Pepsi-Cola's prevailing rates.

Specifically, the service provider will directly charge the Participating Franchisee for any further water filter replacement cartridges needed beyond what is covered in the initial service calls. This means that while Pepsi-Cola coordinates the service, the franchisee is directly responsible for paying the service provider for these specific replacement cartridges.

This arrangement implies that Bonchon franchisees need to budget for potential water filter replacement costs, especially if their equipment requires frequent maintenance or if they exceed the allotted free service calls. Franchisees should inquire about the typical cost of these replacement cartridges and the service provider's rates to better estimate potential expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.