What channels of distribution are Bambu franchisees prohibited from using outside their Protected Area without written consent?

According to Bambu's 2025 Franchise Disclosure Document, franchisees are restricted from utilizing specific distribution channels outside their designated Protected Area without obtaining prior written consent from Bambu. These restricted channels include avenues such as the Internet, catalog sales, telemarketing, and other forms of direct marketing. This policy ensures that franchisees do not encroach upon each other's territories through these alternative sales methods.

This restriction is significant for prospective franchisees as it limits their ability to expand their customer base beyond their physical location and Protected Area using these specific channels. While franchisees can generally advertise their Bambu shop in any geographic area and serve any customer who visits their shop, they must adhere to the outlined restrictions on distribution channels. This limitation is designed to protect the territorial interests of other franchisees and maintain a balanced competitive environment within the Bambu franchise system.

Bambu retains the right to use the Marks to identify any type of products and services, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution (other than Bambū shoppes), at any location, including sales through channels such as retail or wholesale distribution, Internet marketing and distribution, social media marketing, mail order, catalog, retail store display, or made-to-order or pre-packaged product sales in grocery stores. This means that Bambu can utilize these channels without compensating the franchisee.

It is important for potential franchisees to understand these limitations and how they might impact their business strategy, particularly if they envision leveraging online sales or direct marketing to reach customers outside their immediate vicinity. Franchisees should discuss with Bambu what types of activities are allowed and what steps are needed to obtain written consent for using restricted channels.