Can Bambu derive revenue from a franchisee's purchases if Bambu establishes a discount buying program with a designated supplier?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If we designate another third party supplier and then establish a discount buying program or similar arrangement with the designated supplier of a product or menu item that you sell in your shoppe, we reserve the right to derive revenue from your purchases of such products or menu items.
We and our affiliates have the right to receive payments from suppliers on account of their dealings with you and franchisees.
We have an agreement with the approved suppliers for the Proprietary Items for our franchisees, which provides that we will receive between 4 and 10 percent of the amount paid to the supplier by our franchisees for purchases depending on our required commitment to the suppliers. We reserve the right to receive other payments from these and other designated suppliers in the future. We and our affiliates may retain the credit of any rebate, incentive or volume discounts received as a result of your purchases and are not required to share it with our you or our other franchisees.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu reserves the right to derive revenue from franchisee purchases if they establish a discount buying program or similar arrangement with a designated supplier for products or menu items sold in the franchisee's shoppe. This means that if Bambu negotiates a discount with a supplier and sets up a program for franchisees to buy from that supplier, Bambu can take a portion of the revenue generated from those franchisee purchases.
Bambu also has the right to receive payments from suppliers based on the supplier's dealings with franchisees. The document specifies that Bambu has an agreement with approved suppliers of Proprietary Items, where Bambu receives between 4 and 10 percent of the amount franchisees pay to the supplier, depending on Bambu's commitment to the suppliers. Bambu also reserves the right to receive other payments from these and other designated suppliers in the future.
Furthermore, Bambu and its affiliates can retain any rebates, incentives, or volume discounts received as a result of franchisee purchases, and they are not obligated to share these with the franchisees. This arrangement could impact a franchisee's costs and profit margins, as they may not directly benefit from discounts Bambu receives. Prospective franchisees should consider these potential revenue streams for Bambu when evaluating the overall financial implications of the franchise.