What is the dependency related to Bambu's approval of a Franchised Location?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
er no circumstances refundable to Franchisee, unless otherwise specifically set forth in this Agreement.
5. DEVELOPMENT OF FRANCHISED LOCATION
- 5.1 Approval of Franchised Location. Franchisee shall locate, within 90 days after the date of execution of this Agreement, a Franchised Location which is suitable for the operation of the Bambū shoppe and have it accepted by Bambu, provided that Bambu may extend this deadline in the event that Franchisee is making a diligent effort in obtaining a Franchised Location, as determined by Bambu in its discretion. Franchisee shall seek Bambu's approval of any site proposed as a Franchised Location, by submitting such site submittal information, including the address, site plan, terms sheet, and demographics and other reasonable materials requested by Bambu. Franchisee acknowledges and agrees that Bambu's review and acceptance of a site and any information provided by Bambu regarding the site does not constitute a representation or warranty of any kind, express or implied, as to the suitability of the site for a Bambū shoppe. If Bambu disapproves of any site proposed by Franchisee, Bambu will grant Franchisee an additional, reasonable period of time to obtain approval of a Franchised Location, as may be determined in Bambu's sole but reasonable business judgment.
- 5.2 Approval of Site Acquisition or Lease. Bambu will provide Franchisee assistance with the negotiation and review of a letter of intent for the lease, and the lease, for the Franchised Location, as Bambu determines appropriate in its discretion. Bambu's assistance will include suggestions and recommendations concerning the terms and conditions of the letter of intent and lease provisions. It ultimately is the responsibility of Franchisee to negotiate and accept the final terms of the lease and related documents. Franchisee must obtain Bambu's prior written approval before executing any letter of intent or lease for the Franchised Location. If Franchisee leases the Franchised Location, Franchisee shall ensure that the lease for the Franchised Location contains a use clause approved by Bambu and signage criteria that provides for adequate branding of the Bambū shoppe. While Bambu's assistance may include recommendations to protect Franchisee under the terms of the lease, Franchisee acknowledges that Bambu's involvement in the negotiation or approval of a lease for the Franchised Location is primarily for Bambu's benefit only and does not constitute a recommendation, endorsement or guarantee by Bambu of the suitability or profitability of the location, the lease. Franchisee should take all steps necessary to
ascertain whether such location and lease are acceptable to Franchisee, which may include engaging its own legal counsel to review the letter of intent and lease. Franchisee shall deliver a copy of the signed lease for the Franchised Location to Bambu within 15 days of its execution. Franchisee shall notify Bambu when it takes possession of the Franchised Location.
5.3 Construction, Conversion and Design.
- a. Once a lease is signed, Franchisee will need to obtain permits and begin construction of the shoppe as quickly as possible. Franchisee shall retain an architect and general contractor at or before the lease is signed. Franchisee must obtain Bambu's prior written consent of its architect and general contractor. Bambu will not withhold its approval of the architectural firm or general contractor provided they can demonstrate they have sufficient expertise in commercial retail design work to ensure that the plans, approvals and permits are obtained and overview of the project is accomplished. If Bambu does not approve Franchisee's designated architect or general contractor, Bambu may require that Franchisee engage an architectural firm or general contractor designated by Bambu.
- b. Bambu will assist Franchisee in the development of a required kitchen workflow design and layout, including the specific equipment specifications required for use in Franchisee's shoppe.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee must locate a suitable Franchised Location within 90 days of signing the agreement. This location is subject to Bambu's approval. The franchisee needs to submit site information, including the address, site plan, terms sheet, demographics, and any other materials Bambu requests. Bambu may extend the 90-day deadline if the franchisee is diligently trying to find a location.
Bambu's approval of a site doesn't guarantee its suitability or profitability. If Bambu disapproves a proposed site, the franchisee gets more time to find an acceptable location. The franchisee also needs Bambu's written approval before signing any letter of intent or lease for the location. The lease must include a use clause approved by Bambu and signage criteria that allows for adequate branding of the Bambu shoppe.
Bambu offers assistance with negotiating and reviewing the letter of intent and the lease, including suggestions on terms and conditions. However, it's ultimately the franchisee's responsibility to negotiate and accept the final lease terms. Bambu's involvement in lease negotiations is primarily for its own benefit and doesn't constitute a guarantee of the location's suitability or profitability. The franchisee is advised to seek their own legal counsel to review the letter of intent and lease. A copy of the signed lease must be given to Bambu within 15 days of execution, and Bambu must be notified when the franchisee takes possession of the location.
After the lease is signed, the franchisee must obtain necessary permits and begin construction. The franchisee must retain an architect and general contractor, both of whom require Bambu's prior written consent. Bambu won't withhold approval if the architect and contractor can demonstrate sufficient expertise in commercial retail design. If Bambu disapproves the franchisee's choices, Bambu may require the franchisee to use an architect or general contractor designated by Bambu. Franchisees must also obtain Bambu's prior written approval of choice of colors and furniture.