Can Windstream increase rates upon renewal of the Windstream Service Agreement for Bonchon?
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.
If this Agreement is a renewal, it may take one to two billing periods for the rates herein to become effective.
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. 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.
The Monthly Recurring Charges represented above DO NOT include the taxes or charges that Windstream passes on to governmental entities AND the following Windstream fees and surcharges: Access Recovery Charge of up to $3.00 per line or a maximum of 5 per trunk. Regulatory Assessment Surcharge of up to 8% (or for future increases with prior notice, the then-current tariff rate) applies to Interstate and International charges in the following states MN, NY and PA. An Administrative Service Fee of up to 15% (or for future increases with prior notice, the thencurrent tariff rate) applies to Interstate, Intrastate and Internet services monthly charges in all states except MN, NY and PA.
Source: Item 23 — RECEIPTS (FDD pages 92–536)
What This Means (2025 FDD)
According to Bonchon's 2025 Franchise Disclosure Document, Windstream reserves the right to increase rates upon renewal of the service agreement. The agreement automatically renews for successive one-month terms upon expiration of the initial term. When the agreement renews, Windstream has the right to increase rates to its then-current rates.
Bonchon franchisees should be aware that these rate increases can occur at the time of renewal, potentially impacting their operating costs. The agreement states that it may take one to two billing periods for the new rates to become effective. This means that franchisees might not see the increased rates immediately, but they will eventually be applied to their bill.
Furthermore, Windstream retains the right to increase or decrease monthly recurring charges (MRCs) with at least thirty days' notice. They can also change other rates at any time. This gives Windstream considerable flexibility in adjusting pricing, which could affect a Bonchon franchisee's budgeting and financial planning. Franchisees are also responsible for all permissible taxes, surcharges, fees, and assessments that apply to the services, including any future changes to those charges.
In addition to the base rates, franchisees should also be aware of other potential charges. These include an Access Recovery Charge of up to $3.00 per line or a maximum of 5 per trunk, a Regulatory Assessment Surcharge of up to 8% in certain states, and an Administrative Service Fee of up to 15% in most states. These additional fees can significantly increase the overall cost of Windstream's services.