What agreement must a Bambu franchisee execute with a designated supplier or distributor?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
You must execute any agreement as may be reasonably required by a designated supplier or distributor and establish the appropriate credit terms with it.
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, franchisees are required to execute any agreement that a designated supplier or distributor may reasonably require. Additionally, franchisees must establish appropriate credit terms with the designated supplier or distributor.
Bambu mandates that franchisees purchase all products, including ingredients, food items, shop supplies, and programs, from designated or approved suppliers to maintain quality and uniformity. These designated suppliers may vary depending on the franchisee's location. Currently, neither Bambu nor its affiliates act as a single approved supplier, though they do facilitate ordering and payment with one of their designated suppliers.
This requirement ensures that Bambu franchisees adhere to the brand's standards and specifications, but it also means franchisees have limited flexibility in sourcing products. Prospective franchisees should consider the potential impact on their operating costs and profit margins, as they are obligated to use Bambu's designated suppliers and agree to their terms. It is important to note that Bambu reserves the right to change designated suppliers and the list of items subject to these arrangements.