Must a Bambu franchisee execute agreements required by a supplier?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ambu's affiliate or another designated or approved source and irrespective of whether a formal purchase or buying arrangement has been established. Franchisee must execute 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 sup
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are required to execute agreements as may be reasonably required by a supplier and establish appropriate credit terms with them. This means that if a supplier that Bambu has approved requires a specific agreement to be signed before providing goods or services, the franchisee must comply with this requirement. This ensures that the supplier has a formal understanding with the franchisee regarding payment terms, delivery schedules, and other operational details.
This requirement is fairly standard in franchising, as it helps to streamline the supply chain and ensure that franchisees have access to the necessary resources to operate their businesses. By establishing credit terms with suppliers, franchisees can manage their cash flow more effectively and avoid potential disruptions in their supply of essential products. The franchisee is responsible for maintaining a good relationship with the supplier and adhering to the terms of the agreement to ensure a smooth operation.
If a franchisee wishes to use a supplier not already approved by Bambu, they must first seek written approval from Bambu. Bambu has the right to inspect the supplier's facilities and products to ensure they meet the brand's standards. Bambu can reject a proposed supplier for any reason, including to protect trade secrets or if the supplier's terms are not as favorable as those offered by current approved suppliers. Bambu may also require samples from the new supplier for testing, and the franchisee may be charged $150 per hour for Bambu's time spent on testing and investigation, as well as the reasonable costs incurred during the process.