Does the Bambu franchise agreement acknowledge that franchisees have other opportunities to earn a living outside of the Bambu system?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2 Scope of Franchise Operations. Franchisee shall at all times comply with Franchisee's obligations hereunder and shall continuously use best efforts to promote and operate the Bambū shoppe. Franchisee shall utilize the Marks and Bambū system to operate all aspects of the business franchised hereunder in accordance with the methods and systems developed and prescribed from time to time by Bambu, all of which are a part of the Bambū system. Franchisee's Bambū shoppe shall offer all products and services as Bambu designates and shall be restricted from offering or selling any products and services not previously approved by Bambu in writing. If Franchisee is a corporation, partnership, limited liability company or other entity, Franchisee shall not engage in any business other than the operation of a Bambū shoppe.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the franchise agreement addresses whether franchisees can engage in other business activities. Specifically, if the franchisee is a corporation, partnership, limited liability company, or other entity, the franchisee is restricted from engaging in any business other than the operation of a Bambu shoppe. This indicates that the agreement aims to ensure the franchisee's primary focus is on the Bambu business.
This restriction has significant implications for prospective franchisees. If an individual intends to operate a Bambu franchise through a business entity, they must be prepared to dedicate that entity solely to the Bambu franchise. This could impact existing business ventures or future plans to diversify business interests. It is a stricter requirement than some franchises, which may allow other business activities as long as they do not directly compete with the franchise.
However, it is important to note that this restriction applies only if the franchisee is a business entity. The FDD does not explicitly state whether an individual franchisee (not operating through a business entity) is allowed to have other sources of income or business ventures. Therefore, prospective franchisees should seek clarification from Bambu regarding this specific point to fully understand the scope of permissible outside activities.