What are examples of 'Proprietary Items' that Bambu franchisees must purchase from designated suppliers?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to maintain the quality and uniformity of Bambū shoppe products and certain of the programs you offer, you must purchase all products including raw and prepared ingredients, food items, shoppe supplies, and programs offered, used, sold or leased through your Bambū shoppe or otherwise required for the operation of your Bambū shoppe from suppliers or distributors designated or approved by us. We reserve the right to designate a single approved supplier or distributor, including us or our affiliates, for any of these items or other items. In particular, we currently have designated suppliers and distributors for our 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 we may develop from time to time ("Proprietary Items"). The designated supplier or distributor may vary depending on the location of your business. Currently, neither we nor any of our affiliates are a designated single approved supplier of any items offered, used, sold or leased by our franchisees, although we facilitate the ordering and payment with one of our designated suppliers. Further, no officer of ours owns any interest in any of our approved or designated suppliers or distributors. We reserve the right to change any designated supplier or change, reduce or add to the list of items subject to designated supplier arrangements. You must execute any agreement as may be reasonably required by a designated supplier or distributor and establish the appropriate credit terms with it.
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, franchisees are required to purchase certain items from designated or approved suppliers to maintain quality and uniformity. These items include raw and prepared ingredients, food items, shoppe supplies, and programs offered through the Bambu shop.
Specifically, Bambu has designated suppliers for what they term "Proprietary Items." Examples of these Proprietary Items include jellies, powders, syrups, coffee, tea, designated food and beverage products, and other proprietary food items. Logoed cups and other branded material that Bambu may develop are also considered Proprietary Items. The designated supplier may vary depending on the location of the franchisee's business.
It is important to note that Bambu retains the right to change any designated supplier or modify the list of items subject to designated supplier arrangements. Franchisees are obligated to execute any agreements required by a designated supplier or distributor and establish appropriate credit terms with them. While neither Bambu nor its affiliates are currently designated as the single approved supplier for all items, they facilitate the ordering and payment process with one of their designated suppliers.