Can a Bambu franchisee be required to pay monthly dues to the Co-op?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Bambu reserves the right, upon 30 days prior written notice to applicable franchisees, to create a regional advertising association ("Co-op") for the benefit of Bambū franchisees located within a particular geographic area.
If a Co-op is established for the area where Franchisee is located, Franchisee will be required to participate in the Co-op for the purpose of selecting and participating in regional marketing and promotion programs for Bambū shoppes, which programs and other Co-op activities are subject to the approval of Bambu.
Franchisee will be required to remain a member of and be bound by the decisions of the majority of the members of the Co-op regarding expenditures, assessments and dues of the Co-op, to the extent that they are approved by Bambu.
Each Co-op has the right, by majority vote, to require its members to pay monthly dues to the Co-op.
The failure of Franchisee to participate in the Co-op or pay any dues required by the Co-op, may be deemed to be a breach of this Agreement.
Bambu has the right, in its sole discretion, to determine the composition of all geographic territories and market areas for the implementation of such regional advertising and promotional campaigns and to require that Franchisee participate in such regional advertising programs as and when they may be established by Bambu.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees may be required to pay monthly dues to a regional advertising association, or "Co-op", if one is established in their area. Bambu reserves the right to create these Co-ops for franchisees in a specific geographic area, with the aim of facilitating regional marketing and promotion programs. These programs and the Co-op's activities are subject to Bambu's approval.
If a Co-op is established, franchisees are obligated to participate and adhere to the decisions made by the majority of its members regarding expenditures, assessments, and dues, provided that Bambu approves these decisions. The FDD explicitly states that each Co-op has the right to require its members to pay monthly dues through a majority vote.
A franchisee's failure to participate in the Co-op or to pay the required dues may be considered a breach of the Franchise Agreement. Bambu also retains the authority to determine the composition of geographic territories and market areas for these regional advertising campaigns and can mandate a franchisee's participation in such programs when established.