factual

What agreements must a Bambu franchisee execute with suppliers?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

ambu's affiliate or another designated or approved source and irrespective of whether a formal purchase or buying arrangement has been established. Franchisee must execute any agreement as may be reasonably required by a Supplier and establish the appropriate credit terms with it.

  • 14.6 Request to Approve Supplier.

Source: Item 23 — Receipts (FDD pages 52–209)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, a franchisee must execute any agreement as may be reasonably required by a supplier and establish appropriate credit terms with that supplier. This means that when a Bambu franchisee purchases goods or services from an approved supplier, they may be required to sign a separate agreement directly with that supplier, in addition to any agreements with Bambu itself.

This requirement ensures that the supplier has a direct contractual relationship with the franchisee, which can cover aspects like payment terms, delivery schedules, and product specifications. It also allows the supplier to enforce its own terms and conditions directly with the franchisee. The franchisee is also responsible for establishing appropriate credit terms with the supplier, which could involve setting up a line of credit or agreeing to a payment schedule.

It is important for prospective Bambu franchisees to understand that these supplier agreements are separate from the franchise agreement with Bambu. Franchisees should carefully review the terms of any supplier agreement before signing, as these agreements can have a significant impact on their business operations and financial obligations. Furthermore, Bambu reserves the right to derive revenue from franchisee purchases of food items, products, or programs from Bambu, its affiliates, or another designated or approved source, regardless of whether a formal purchase or buying arrangement has been established.

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.