What should a Bambu franchisee do if there is no designated or approved supplier for a particular item?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If there is no designated or approved Supplier for a particular product, piece of equipment, ingredient, food item, supply, material or program, Franchisee shall propose, for prior written approval by Bambu, such other suppliers who meet all of Bambu's specifications and standards as to quality, composition, finish, appearance and service, and who shall adequately demonstrate their capacity and ability to supply Franchisee's needs in the quantities, at the times, and with the reliability requisite to an efficient operation of the Bambū shoppe.
Bambu reserves the right to derive revenue from Franchisee's purchases of food items, products or programs, whether the purchase is from Bambu, Bambu's affiliate or another designated or approved source and irrespective of whether a formal purchase or buying arrangement has been established.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if there isn't an already approved supplier for a needed product, piece of equipment, ingredient, food item, supply, material, or program, a franchisee must propose potential suppliers to Bambu for written approval. These proposed suppliers must meet all of Bambu's standards for quality, composition, finish, appearance, and service. Additionally, they need to demonstrate they can reliably supply the franchisee's needs in the necessary quantities and at the required times for efficient operation.
This process ensures that all products used in the Bambu franchise meet the franchisor's standards, maintaining consistency across all locations. It also allows Bambu to control the quality and potentially benefit financially from franchisee purchases, even if those purchases are not directly from Bambu or its affiliates.
It is important to note that Bambu has the right to derive revenue from franchisee purchases, regardless of the supplier. Franchisees should also be aware that they must establish appropriate credit terms with any approved supplier and adhere to Bambu's standards to avoid being in default of their franchise agreement.