Is a Bambu franchisee required to purchase related equipment and software for promotional programs?

n the region, or another unknown hardship arises, Bambu may, at Bambu's option, exempt Franchisee and/or other franchisees on a case-by-case basis. Franchisee must follow the guidelines provided by the designated provider of any of these programs and the guidelines set forth in the FRC Materials with respect to Franchisee's obligations and responsibilities under the program (which may include a requirement to purchase related equipment and software), the methods of operation for the program, the transaction information Franchisee is required to provide to Bambu and the retention of complete and accurate books and records regarding transactions made pursuant to a program.

14. QUALITY CONTROL

• 14.1 Compliance with FRC Materials. Franchisee shall maintain and operate the Bambū shoppe in compliance with this Agreement and the mandatory standards and specifications contained in the OOM and other FRC Materials, as the same may be modified from time to time by Bambu.
• 14.2 Standards and Specifications. Bambu will make available to Franchisee standards and specifications for the menu items, products and services offered at or through the Bambū shoppe and for the Franchised Location, equipment, menus, including ingredients and nutritional information, finishes, counter, POS System, loyalty rewards program equipment, logoed paper products, uniforms, insurance,

advertising materials, equipment, certain supplies and other items used in connection with the shoppe. Bambu reserves the right to change standards and specifications for products and services offered at or through the Bambū shoppe and for the Franchised Location, equipment, menus, food, paper products, employee attire, supplies, advertising material and other items used in connection with the shoppe, upon 10 days prior written notice to Franchisee. Franchisee shall, throughout the term of this Agreement, remain in compliance and strictly adhere to all of Bambu's current quality, compliance and operations standards and specifications for the Bambū shoppe as prescribed from time to time.

• 14.3 Inspections. Bambu shall have the right to visit, inspect and conduct operational facility reviews of the Franchised Location, including the inventory, products, equipment, materials, supplies or programs used or sold there, to ensure compliance with all standards and specifications set by Bambu. Bambu shall conduct such inspections and reviews during regular business hours and Franchisee may be present at such inspections. Bambu, however, reserves the right to conduct the inspections without prior notice to Franchisee.
• 14.4 Restrictions on Products and Programs. Franchisee is prohibited from offering or selling any products or programs not authorized by Bambu as being a part of the Bambū system. If Franchisee proposes to offer, conduct or utilize any products, materials, items, supplies or programs for use in connection with or sale through the Bambū shoppe which are not previously approved by Bambu as meeting its specifications, Franchisee shall first notify Bambu in writing requesting approval. Bambu may, in its sole discretion, for any reason whatsoever, elect to withhold such approval; however, in order to make such determination, Bambu may require submission of specifications, information, or samples of such products, programs, materials, forms, items or supplies. Franchisee shall pay the reasonable costs of investigation in determining whether such products, materials, items or supplies meet its specifications. Bambu will advise Franchisee within a reasonable time whether such products, programs, materials, forms, items or supplies meet its specifications.
• 14.5 Approved or Designated Suppliers. Franchisee shall purchase all products, equipment, materials, supplies and programs required for the operation of the Bambū shoppe from Bambu, from Bambu's designated affiliates, or from Suppliers designated or approved by Bambu. 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.

Source: Item 23 — Receipts (FDD pages 52–209)