For Bonchon, can WIN increase rates upon renewal of the service agreement?
Bonchon Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon expiration of the Term, this Agreement will automatically renew for successive one-month terms (each, a "Renewal Term") and WIN reserves the right to increase rates to its then-current rates.
Customer is responsible for all permissible taxes, surcharges, fees, and assessments that apply to Services, including how those may change in the future, and regardless of whether such charges are identified in the Agreement.
Customer shall pay all charges if WIN or a third party provider is required to extend the demarcation point, delay installation due to Customer, or undertake special construction. WIN RESERVES THE RIGHT TO INCREASE OR DECREASE MONTHLY RECURRING CHARGES ("MRCS") ON AT LEAST THIRTY (30) DAYS' NOTICE AND OTHER RATES AT ANY TIME.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Windstream (WIN) reserves the right to increase rates upon renewal of the service agreement. Specifically, the agreement automatically renews for successive one-month terms, and WIN can increase rates to its then-current rates at the time of renewal.
This means that a Bonchon franchisee's telecommunications service costs through Windstream could fluctuate. While the initial term's charges are set forth in the service agreement, the monthly recurring charges can be increased or decreased by WIN with at least thirty days' notice. Other rates can be changed at any time.
As a prospective franchisee, it is important to factor in potential increases in these service costs when budgeting and forecasting expenses. Franchisees should regularly review their Windstream service agreements and any notices from WIN regarding rate changes to stay informed and manage their operational costs effectively. Franchisees should also confirm whether these potential increases are capped or limited in any way.