factual

Are Bambu Co-op programs and activities subject to Bambu's approval?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

anchisees, to create a regional advertising association ("Co-op") for the benefit of Bambū franchisees located within a particular geographic area. If a Co-op is established for the area where Franchisee is located, Franchisee will be required to participate in the Co-op for the purpose of selecting and participating in regional marketing and promotion programs for Bambū shoppes, which programs and other Co-op activities are subject to the approval of Bambu. Franchisee will be required to remain a member of and be bound by the decisions of the majority of the members of the Co-op regarding expenditures, assessments and dues of the Co-op, to the extent that they are approved by Bambu.

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

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, if a Co-op is established for the area where a franchisee's store is located, the franchisee is required to participate in the Co-op. The purpose of this participation is to select and engage in regional marketing and promotion programs for Bambu shops. These programs and other Co-op activities are subject to Bambu's approval.

This means that while franchisees may have some say in regional marketing through the Co-op, Bambu retains ultimate control over the marketing strategies and activities implemented. Franchisees are obligated to adhere to the decisions made by the majority of the Co-op members regarding expenditures, assessments, and dues, but only to the extent that Bambu approves those decisions.

Furthermore, the FDD states that failure to participate in the Co-op or pay any required dues may be considered a breach of the Franchise Agreement. This underscores the importance of franchisee involvement in the Co-op and compliance with its financial obligations, subject to Bambu's overarching approval. This ensures that all regional marketing efforts align with Bambu's brand standards and strategic objectives.

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.