Is a Bambu franchisee required to participate in the purchasing arrangements that Bambu has in place?

According to Bambu's 2025 Franchise Disclosure Document, franchisees must participate in the purchasing arrangements that Bambu has in place for proprietary and designated food and drink items. However, the FDD also states that franchisees should not rely on the continued availability of any particular pricing arrangement, product, or brand when deciding to purchase the franchise. This means that while participation is mandatory, the specific terms and offerings within those arrangements can change.

Bambu maintains the right to designate single approved suppliers or distributors for all products, including raw and prepared ingredients, food items, shoppe supplies, and programs. They currently have designated suppliers for proprietary items like jellies, powders, syrups, coffee, tea, and logoed cups. The designated supplier may vary depending on the franchisee's location. Bambu also reserves the right to receive payments from suppliers based on the franchisee's purchases, and to retain any rebates or discounts received as a result of these purchases.

While franchisees are generally required to purchase from designated or approved sources to maintain quality and uniformity, they are not obligated to purchase or lease goods, services, supplies, fixtures, equipment, inventory, or real estate from Bambu or any specifically designated source, other than those specified. Franchisees are also required to purchase a point-of-sale (POS) system that meets Bambu's specifications, including hardware for the loyalty rewards program. The current required POS system is the Square bundled system, for which franchisees will pay monthly fees for maintenance and updates.

Prospective franchisees should be aware that Bambu can change designated suppliers and the list of items subject to these arrangements. They must also execute any agreements required by designated suppliers and establish appropriate credit terms with them. Additionally, franchisees must participate in Bambu's customer loyalty rewards program and other promotional campaigns, and honor any coupons or discounts prescribed by Bambu.