What factors does Bambu consider when approving a new supplier proposed by a Bambu franchisee?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
e any agreement as may be reasonably required by a Supplier and establish the appropriate credit terms with it.
- 14.6 Request to Approve Supplier. In the event Franchisee desires to purchase or use inventory, products, equipment, supplies, materials, services or programs from suppliers other than those previously approved by Bambu, Franchisee shall, prior to purchasing from or otherwise utilizing any supplier give Bambu a written request to approve the supplier. In the event Bambu rejects Franchisee's requested new supplier, Bambu must, within 60 days of the receipt of Franchisee's request to approve the supplier notify Franchisee in writing of its rejection. Bambu may continue from time to time to inspect any suppliers' facilities and products to assure compliance with Bambu's standards and specifications. Permission for such inspection shall be a condition of the continued approval of such supplier. Bambu may in its sole discretion elect to withhold approval of the supplier for any reason it determines, including for purposes of protecting its trade secrets or on the basis of the terms offered to Bambu itself or its franchisees from the proposed supplier compared to any current designated or approved supplier. In order to make such
determination, Bambu may require that samples from a proposed new supplier be delivered to Bambu for testing prior to approval and use. Bambu may impose a charge equal to $150 per hour per each representative of Bambu involved in the testing and investigation of a proposed new supplier request, and Franchisee shall also be required to pay the reasonable costs incurred by Bambu in connection with the testing and investigation.
14.7 Shopping Service. Bambu reserves the right to use third party mystery shopping or similar information gathering services, which may be online, from time to time to evaluate the conduct of Franchisee's Bambū shoppe, including such things as inventory, customer service, cleanliness, merchandising and proper use of computers and registers. Bambu may use such shopping services to inspect Franchisee's Bambū shoppe at any time at Bambu's expense, without prior notification to Franchisee. Bambu may make the results of any such service evaluation available to Franchisee, in Bambu'
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee wants to purchase from a supplier not already approved by Bambu, they must submit a written request for approval. Bambu has the right to inspect the supplier's facilities and products to ensure they meet Bambu's standards. Continued approval of a supplier is conditional on allowing these inspections.
Bambu has the discretion to reject a proposed supplier for any reason, including protecting trade secrets or if the terms offered by the proposed supplier are not as favorable as those from current approved suppliers. To evaluate a new supplier, Bambu may require samples for testing, and the franchisee may have to cover the costs associated with this testing, including an hourly charge of $150 per Bambu representative involved and any other reasonable costs incurred during the investigation.
If there isn't an approved supplier for a specific item, the franchisee can propose a supplier who meets Bambu's standards for quality, composition, finish, appearance, and service. The supplier must also demonstrate their ability to reliably supply the franchisee's needs in the required quantities and at the necessary times for efficient operation. Overall, Bambu retains significant control over the supply chain to maintain quality and protect its brand standards, and franchisees need to be prepared to potentially incur costs when suggesting new suppliers.
This level of control over suppliers is common in franchising to ensure brand consistency and quality control. However, the potential costs associated with proposing a new supplier, such as the $150 per hour fee for Bambu's review, could be a significant consideration for franchisees. It is important for prospective franchisees to discuss the supplier approval process and associated costs with Bambu to fully understand the financial implications.