What demographic and market conditions does Bambu consider when designating a Protected Area?

According to Bambu's 2025 Franchise Disclosure Document, the placement of a shoppe and the designation of a Protected Area depends on various demographic and market conditions around a proposed Franchised Location. These factors include the density of population, the number of competitors and other food uses in the market, site availability, traffic, access, and growth potential. The Protected Area is a geographic area in which Bambu will not establish or franchise anyone else to establish other Bambu shoppes, with some exceptions. The Protected Area may be defined by a radius around the shoppe, zip code boundaries, street boundaries, or similar designations.

Bambu also considers demographics and other characteristics of a Development Area when granting rights to establish multiple locations under a MUD Agreement. These factors include population density, income, the nature of the surrounding area (urban, suburban, or rural), natural boundaries, and the extent of competition. However, franchisees do not receive an exclusive territory under the MUD Agreement and may face competition from other franchisees, company-owned outlets, or other channels of distribution.

It is important to note that the designation of a Protected Area does not grant exclusive rights to any particular market or customers. Franchisees may advertise their Bambu shoppe in any geographic area and serve all customers who enter their shoppe, subject to reasonable restrictions and policies. Bambu retains the right to use and license others to use the Marks and Bambu system at any location other than the Protected Area and, if applicable, within the Development Area. They also retain the right to establish restaurants similar to Bambu shoppes that service walkup and drive-thru customers but without indoor seating at any location, including in the franchisee's Protected Area and Development Area, provided that the franchisee has a right of first refusal to participate in the Drive-thru shoppe with either partial or whole ownership thereof.