What must a Bambu franchisee do before purchasing from a supplier not previously approved by Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
e 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, a franchisee who wants to purchase from a supplier not already approved by Bambu must first submit a written request to Bambu for approval before making any purchases from that supplier. Bambu has the right to inspect the supplier's facilities and products to ensure they meet Bambu's standards. Permission for inspection is a condition of continued approval.
Bambu can reject a franchisee's supplier request for any reason, including protecting trade secrets or if the supplier's terms are not as favorable as those offered by current approved suppliers. To evaluate a new supplier, Bambu may require samples for testing, and the franchisee may have to cover the costs of testing and investigation. These costs could include $150 per hour for each Bambu representative involved, plus reasonable costs incurred during the testing process.
This process ensures that all products and services used within the Bambu franchise system meet the franchisor's standards for quality and consistency. It also allows Bambu to maintain control over its supply chain and protect its brand. Franchisees should factor in the time and potential costs associated with getting a new supplier approved when making purchasing decisions.