Can Bambu establish an advertising cooperative for a particular region to enable self-administration of regional advertising programs?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
costs, salaries and overhead as Bambu may incur in activities related to the implementation and administration of the Co-op and marketing programs. Bambu also reserves the right to establish an advertising cooperative for a particular region to enable the cooperative to selfadminister the regional advertising programs.
- 13.5 Initial Marketing and Promotional Campaign. Franchisee shall conduct an initial marketing and promotional program for the Bambū shoppe at or around the time that the shoppe opens. Franchisee's initial marketing and promotional campaign will utilize the marketing and public relations programs and media and advertising materials that Bambu has developed or that Bambu otherwise approves.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu reserves the right to establish an advertising cooperative for a specific region, allowing the cooperative to manage its own regional advertising programs. Bambu also has the authority to form, change, and dissolve these cooperatives at its discretion. If Bambu implements a regional advertising program, the contributions from Bambu franchisees within that region will be used for that specific program. However, Bambu can seek reimbursement from the cooperative for reasonable administrative costs, salaries, and overhead related to implementing and managing the cooperative and its marketing programs.
If a regional advertising association (Co-op) is established for the franchisee's area, the franchisee is required to participate in the Co-op. This participation involves selecting and engaging in regional marketing and promotion programs for Bambu shops, all of which are subject to Bambu's approval. The franchisee must remain a member and adhere to the decisions made by the majority of the Co-op members regarding expenditures, assessments, and dues, provided that Bambu approves these decisions. The Co-op has the right to require its members to pay monthly dues through a majority vote.
Failure to participate in the Co-op or pay the required dues may be considered a breach of the Franchise Agreement. Bambu also retains the right to determine the composition of geographic territories and market areas for regional advertising campaigns and can require franchisees to participate in these programs as they are established. This structure gives Bambu significant control over regional advertising efforts while allowing for some level of self-administration by franchisees within a specific region through the cooperative.