factual

What actions should a Bambu franchisee take to ascertain the suitability of the location and lease?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

rials, and you are required to comply with them.

Shoppe Lease and Build-Out

We will assist you with negotiations of the LOI for the lease for your Franchised Location and in the lease negotiations and review. Our assistance involves suggestions and recommendations concerning the terms and conditions of the LOI and the lease provisions. It ultimately is your responsibility, however, to negotiate and accept the final terms of these documents. We will review and provide our suggestions to any lease or sublease ("Lease") for the Franchised Location of your shoppe before you sign the Lease. In particular, the Lease must include a use clause acceptable to us and signage criteria that provides for adequate branding of the Bambū name. Our involvement in the negotiation and approval of the lease for the Franchised Location does not constitute a recommendation, endorsement or guarantee by us of the suitability or profitability of the location or the lease, and you will need to take any additional steps necessary to

ascertain whether such location and lease are acceptable to you, which may include engaging your own legal counsel. A copy of any signed Lease must be delivered to us within 15 days after you sign it.

Once a lease is signed, you will need to obtain permits and begin construction of the shoppe as quickly as possible in order to avoid paying rent before your Bambū shoppe is open for business. This will require, in most instances, retaining an architect and general contractor at or before the lease is signed. You must obtain our prior written consent of your architect and general contractor. We will not withhold our approval of the architectural firm or general contractor provided they can demonstrate they have sufficient expertise in commercial retail design work to ensure that the plans, approvals and permits are obtained and overview of the project is accomplished. If we do not approve your designated architect or general contractor, we may require that you engage an architectural firm or general contractor designated by us.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, while Bambu will assist with the negotiation of the Letter of Intent (LOI) and the lease, it is ultimately the franchisee's responsibility to ensure the location and lease are acceptable. Bambu's assistance includes providing suggestions and recommendations regarding the terms and conditions of the LOI and lease provisions. Before signing the lease, Bambu will review it and provide suggestions, particularly focusing on including a use clause acceptable to them and signage criteria that adequately brands the Bambu name.

However, Bambu explicitly states that their involvement in the lease negotiation and approval does not constitute a recommendation, endorsement, or guarantee of the location's suitability or profitability. Therefore, the franchisee must take additional steps to determine if the location and lease meet their needs. These steps may include engaging their own legal counsel to review the lease and assess the location's potential. After signing the lease, a copy must be delivered to Bambu within 15 days.

Furthermore, the franchisee needs to obtain permits and begin construction quickly to avoid paying rent before the Bambu shop opens. This typically requires hiring an architect and general contractor, for which Bambu's prior written consent is needed. Bambu will generally approve the architect and contractor if they have sufficient expertise in commercial retail design. If Bambu does not approve the franchisee's choices, they may require the franchisee to use an architect or general contractor designated by Bambu.

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.