Who are considered 'Principals' in the context of criminal convictions that could affect the Bambu franchise?

According to Bambu's 2025 Franchise Disclosure Document, the term "Principals" refers to individuals whose criminal convictions could potentially impact the Bambu franchise. Specifically, Principals include the franchisee, any of its owners, managing members, or Bambu Certified Team Leaders.

This definition is important because if any of these Principals are convicted of a felony, a crime involving moral turpitude, or any crime or offense that could reasonably and unfavorably affect the Bambu system's reputation, it can lead to consequences under the franchise agreement. Bambu retains the sole discretion to determine if a crime falls under this category and whether it materially affects the system.

For a prospective franchisee, this means that Bambu will scrutinize the backgrounds of not only the franchisee but also any owners, managing members, and certified team leaders. A criminal conviction of someone in these roles could be grounds for concern and potentially affect the franchise agreement. It is essential for franchisees to ensure that all individuals in these positions maintain a clean criminal record to avoid any potential issues with Bambu.