What must a Bambu franchisee provide to Bambu upon request to prove ownership of the shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall at all times during the term of this Agreement own and control the Bambū shoppe authorized hereunder.
Upon request of Bambu, Franchisee shall promptly provide satisfactory proof of such ownership to Bambu.
Franchisee represents that the Statement of Ownership, attached hereto as Attachment III and by this reference incorporated herein, is true, complete, accurate and not misleading, and, in accordance with the information contained in the Statement of Ownership, the controlling ownership of the Bambū shoppe is held by Franchisee.
Franchisee shall promptly provide Bambu with a written notification if the information contained in the Statement of Ownership changes at any time during the term of this Agreement and shall comply with the applicable transfer provisions contained in Article 17 herein.
In addition, if Franchisee is an entity, all of the owners, partners or members of Franchisee shall sign the Personal Guaranty attached hereto as Attachment II.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee must provide satisfactory proof of ownership of their Bambu shoppe to Bambu upon request. This requirement ensures that the franchisee maintains control and ownership of the business throughout the term of the franchise agreement.
This provision allows Bambu to verify that the franchisee is adhering to the terms of the agreement, which stipulates that the franchisee must own and control the Bambu shoppe. The franchisee initially represents their ownership through a Statement of Ownership (Attachment III), which must be true, complete, accurate, and not misleading. Any changes to the information in this statement must be promptly reported to Bambu in writing, and the franchisee must comply with the transfer provisions outlined in Article 17 of the agreement.
For franchisees operating as an entity, all owners, partners, or members must also sign a Personal Guaranty (Attachment II). This multifaceted approach ensures that Bambu has a clear understanding of the ownership structure and can enforce the agreement effectively. This is a fairly standard practice in franchising, as franchisors need to ensure that their franchisees are the actual owners and operators of the business to maintain brand consistency and operational standards.
Prospective franchisees should carefully review the Statement of Ownership and Personal Guaranty attachments to fully understand their obligations and ensure they can provide the required proof of ownership when requested by Bambu. This requirement is in place to protect the integrity of the Bambu brand and ensure that franchisees are committed to the business.