Is a Bambu franchisee bound by the decisions of the majority of the Co-op members?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Co-op is established for the area where Franchisee is located, Franchisee will be required to participate in the Co-op for the purpose of selecting and participating in regional marketing and promotion programs for Bambū shoppes, which programs and other Co-op activities are subject to the approval of Bambu.
Franchisee will be required to remain a member of and be bound by the decisions of the majority of the members of the Co-op regarding expenditures, assessments and dues of the Co-op, to the extent that they are approved by Bambu.
Each Co-op has the right, by majority vote, to require its members to pay monthly dues to the Co-op.
The failure of Franchisee to participate in the Co-op or pay any dues required by the Co-op, may be deemed to be a breach of this Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a regional advertising association (Co-op) is established for the area where a franchisee's location is, the franchisee is required to participate in the Co-op. This participation is for the purpose of selecting and engaging in regional marketing and promotion programs for Bambu shops. However, these programs and other Co-op activities are subject to Bambu's approval.
The FDD specifies that a franchisee will be required to remain a member of, and be bound by, the decisions of the majority of the members of the Co-op. This obligation extends to decisions regarding expenditures, assessments, and dues of the Co-op, but only to the extent that these decisions are approved by Bambu. Therefore, while the majority can decide on certain aspects of the Co-op's operations, Bambu retains the final say.
The document also states that each Co-op has the right, by majority vote, to require its members to pay monthly dues to the Co-op. Failure to participate in the Co-op or pay any dues required by the Co-op may be deemed a breach of the Franchise Agreement. This highlights the importance of actively engaging with the Co-op and fulfilling the financial obligations it imposes, subject to Bambu's approval.