On what basis can Bambu reject a proposed supplier?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
y 15 percent to 20 percent of the total cost of operating a Bambū shoppe after that time
If you want to purchase or use any inventory, products, equipment, supplies, materials, services or programs we have not approved, or purchase or lease these items from a supplier who we have not approved, you must notify us in writing and obtain our approval in advance. The notification should include sufficient specifications, photographs, drawings and other information and samples to determine whether those items or those suppliers meet our specifications. You must pay us a fee of $150 per hour per person in our testing and investigation, and reimburse us for the actual cost of any testing and the reasonable cost of investigation, to determine whether those items or suppliers meet our specifications. We will notify you of our decision within 30 days of receipt of your written request. We may reject a proposed supplier on any basis in our discretion, including for purposes of protecting our trade secrets from third parties or on the basis of the terms offered to us or our franchisees from the proposed supplier compared to any current designated or approved supplier. We do not have written criteria for supplier approval, and therefore such criteria are not provided to our franchisees. If we establish written criteria, we reserve the right to change any criteria regarding any approved supplier or any inventory, equipment, supplies, or services used, offered for sale or leased by franchise
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, if a franchisee wants to purchase or use inventory, products, equipment, supplies, materials, services, or programs from a supplier who Bambu has not approved, the franchisee must first seek approval from Bambu. The franchisee needs to provide sufficient specifications, photographs, drawings, and other information to allow Bambu to determine if the items or suppliers meet their standards. The franchisee is responsible for covering Bambu's costs for testing and investigation, including a fee of $150 per hour per person involved, as well as the actual cost of any testing and the reasonable cost of investigation.
Bambu will then notify the franchisee of their decision within 30 days of receiving the written request. Bambu retains the discretion to reject a proposed supplier on any basis. This includes protecting their trade secrets from third parties or evaluating the terms offered by the proposed supplier compared to those of current approved suppliers.
This policy gives Bambu broad authority over the supply chain, which is typical in franchising. While this ensures quality control and uniformity, it also means franchisees have limited autonomy in choosing suppliers and controlling costs. Franchisees should carefully consider these restrictions and the potential costs associated with seeking approval for new suppliers.