factual

What criteria must other suppliers meet to be considered for approval by Bambu?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

sonable time whether such products, programs, materials, forms, items or supplies meet its specifications.

  • 14.5 Approved or Designated Suppliers. Franchisee shall purchase all products, equipment, materials, supplies and programs required for the operation of the Bambū shoppe from Bambu, from Bambu's designated affiliates, or from Suppliers designated or approved by Bambu. If there is no designated or approved Supplier for a particular product, piece of equipment, ingredient, food item, supply, material or program, Franchisee shall propose, for prior written approval by Bambu, such other suppliers who meet all of Bambu's specifications and standards as to quality, composition, finish, appearance and service, and who shall adequately demonstrate their capacity and ability to supply Franchisee's needs in the quantities, at the times, and with the reliability requisite to an efficient operation of the Bambū shoppe. Bambu reserves the right to derive revenue from Franchisee's purchases of food items, products or programs, whether the purchase is from Bambu, Bambu'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. In the event Franchisee desires to purchase or use inventory, products, equipment, supplies, materials, services or programs from suppliers other than those previously approved by Bambu, Franchisee shall, prior to purchasing from or otherwise utilizing any supplier give Bambu a written request to approve the supplier. In the event Bambu rejects Franchisee's requested new supplier, Bambu must, within 60 days of the receipt of Franchisee's request to approve the supplier notify Franchisee in writing of its rejection. Bambu may continue from time to time to inspect any suppliers' facilities and products to assure compliance with Bambu's standards and specifications. Permission for such inspection shall be a condition of the continued approval of such supplier.

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

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, franchisees must purchase products, equipment, materials, supplies, and programs from Bambu, its affiliates, or approved suppliers. However, if there isn't an approved supplier for a specific item, franchisees can propose other suppliers for Bambu's written approval. To be considered, these suppliers must meet all of Bambu's specifications and standards regarding quality, composition, finish, appearance, and service.

Furthermore, potential suppliers must demonstrate their capacity and ability to reliably supply the franchisee's needs in the necessary quantities and at the required times to ensure the efficient operation of the Bambu store. Bambu retains the right to derive revenue from franchisee purchases, regardless of whether the purchase is from Bambu, an affiliate, or another approved source.

Bambu may inspect any supplier's facilities and products to ensure compliance with their standards, and permission for such inspections is a condition of continued approval. Bambu can withhold approval for any reason, including protecting trade secrets or based on the terms offered compared to current suppliers. Bambu may also require samples for testing and may charge the franchisee $150 per hour for each Bambu representative involved in the testing and investigation, in addition to the reasonable costs incurred during the process.

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.