Does Bambu derive revenue from sales of Proprietary Items to its franchisees?

According to Bambu's 2025 Franchise Disclosure Document, Bambu does derive revenue from the sale of Proprietary Items to its franchisees. In the fiscal year ending December 31, 2024, Bambu's revenue from franchisee purchases totaled $684,500, which represents approximately 25.4 percent of their total revenues of $2,694,689. Proprietary Items include proprietary jellies, powders, syrups, coffee, tea, designated food and beverage products, and other proprietary food items as well as logoed cups and other branded material that Bambu may develop from time to time.

This indicates that a portion of Bambu's income is directly tied to the success and purchasing activity of its franchisees. It also means that franchisees are required to purchase certain items from Bambu, ensuring quality control and brand consistency, but also contributing to Bambu's revenue stream. Franchisees are obligated to purchase all products including raw and prepared ingredients, food items, shoppe supplies, and programs offered, used, sold or leased through their Bambū shoppe from suppliers or distributors designated or approved by Bambu.

Bambu also has purchasing arrangements to provide franchisees with proprietary and designated food and drink items. Bambu and its affiliates have the right to receive payments from suppliers on account of their dealings with franchisees. Bambu has an agreement with the approved suppliers for the Proprietary Items for franchisees, which provides that Bambu will receive between 4 and 10 percent of the amount paid to the supplier by franchisees for purchases depending on their required commitment to the suppliers. Bambu reserves the right to receive other payments from these and other designated suppliers in the future. Bambu and its affiliates may retain the credit of any rebate, incentive or volume discounts received as a result of franchisee purchases and are not required to share it with franchisees.