Is a Bambu franchisee ultimately responsible for negotiating and accepting the final terms of the lease and related documents?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.2 Approval of Site Acquisition or Lease. Bambu will provide Franchisee assistance with the negotiation and review of a letter of intent for the lease, and the lease, for the Franchised Location, as Bambu determines appropriate in its discretion. Bambu's assistance will include suggestions and recommendations concerning the terms and conditions of the letter of intent and lease provisions. It ultimately is the responsibility of Franchisee to negotiate and accept the final terms of the lease and related documents. Franchisee must obtain Bambu's prior written approval before executing any letter of intent or lease for the Franchised Location. If Franchisee leases the Franchised Location, Franchisee shall ensure that the lease for the Franchised Location contains a use clause approved by Bambu and signage criteria that provides for adequate branding of the Bambū shoppe. While Bambu's assistance may include recommendations to protect Franchisee under the terms of the lease, Franchisee acknowledges that Bambu's involvement in the negotiation or approval of a lease for the Franchised Location is primarily for Bambu's benefit only and does not constitute a recommendation, endorsement or guarantee by Bambu of the suitability or profitability of the location, the lease. Franchisee should take all steps necessary to
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, while Bambu offers assistance with the negotiation and review of the letter of intent and the lease for the Franchised Location, the franchisee is ultimately responsible for negotiating and accepting the final terms of the lease and related documents. Bambu's assistance includes suggestions and recommendations concerning the terms and conditions of the letter of intent and lease provisions. The franchisee must also obtain Bambu's prior written approval before executing any letter of intent or lease for the Franchised Location.
This means that while Bambu provides support and guidance during the leasing process, the franchisee bears the responsibility of ensuring the lease terms are favorable and suitable for their business. This includes understanding all the clauses, conditions, and obligations outlined in the lease agreement. It is crucial for prospective franchisees to carefully review the lease documents and, if necessary, seek independent legal counsel to protect their interests.
Bambu's involvement in the negotiation or approval of a lease is primarily for Bambu's benefit and does not constitute a recommendation, endorsement, or guarantee by Bambu of the suitability or profitability of the location, or the lease. Therefore, franchisees should not solely rely on Bambu's input but should conduct their own due diligence and seek professional advice to make informed decisions about the lease agreement. Franchisees must ensure that the lease contains a use clause approved by Bambu and signage criteria that provides for adequate branding of the Bambu shoppe.