Must a Bambu franchisee honor coupons and discounts even if not reimbursed by Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Except as prohibited or limited by law, Franchisee shall fully participate in all promotional campaigns, prize contests, customer loyalty rewards programs, special offers, discount programs, social media programs, and other programs, whether international, national, regional, or local in nature (including the introduction of new products or services or other marketing programs directed or approved by Bambu), which are prescribed from time to time by Bambu.
Franchisee shall participate in Bambu's customer loyalty rewards program and be responsible for the costs of such participation.
In addition, Franchisee shall honor any coupons, customer loyalty rewards program points or credits, discounts, or other authorized promotional offers of Bambu at Franchisee's sole cost unless otherwise specified in writing by Bambu.
Franchisee acknowledges that Bambu frequently implements such promotions intended to increase customer awareness and build business on an international, national, regional, or local level, and Franchisee's participation in these promotions is essential to their success.
Franchisee acknowledges that Bambu has no obligation to reimburse Franchisee for the costs associated with participating in these promotions.
From time to time a promotion may not benefit all franchisees in the Bambū system; and if the promotion is not offered in the region, or another unknown hardship arises, Bambu may, at Bambu's option, exempt Franchisee and/or other franchisees on a case-by-case basis.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are generally required to participate in all promotional campaigns, including discount programs and special offers. Franchisees must honor any coupons, customer loyalty rewards program points or credits, discounts, or other authorized promotional offers of Bambu at the franchisee's sole cost, unless Bambu specifies otherwise in writing. This means that franchisees are responsible for covering the costs associated with these promotions.
Bambu implements promotions to increase customer awareness and build business on different levels, and franchisee participation is considered essential for the success of these promotions. However, Bambu acknowledges that some promotions may not benefit all franchisees equally, and in cases where a promotion is not offered in a specific region or another hardship arises, Bambu may choose to exempt a franchisee on a case-by-case basis.
This policy has significant implications for prospective Bambu franchisees. It means franchisees need to factor in the potential costs of participating in various promotional programs when assessing their potential profitability. While Bambu may offer exemptions in certain situations, franchisees should be prepared to absorb the costs of these promotions as part of their standard operating expenses. It is important to communicate with Bambu to understand what promotions are planned and if there is a possibility of being reimbursed.