Do Bambu franchisees need to execute agreements with designated suppliers?

According to Bambu's 2025 Franchise Disclosure Document, franchisees are required to purchase certain products from designated or approved suppliers to maintain quality and uniformity. These products include raw and prepared ingredients, food items, shoppe supplies, and programs offered through the Bambu shop. Bambu retains the right to designate a single approved supplier for any of these items, including themselves or their affiliates. Currently, designated suppliers exist for proprietary items like jellies, powders, syrups, coffee, tea, designated food and beverage products, logoed cups, and other branded materials. The specific designated supplier may vary depending on the franchisee's location.

As a Bambu franchisee, you must execute any agreement reasonably required by a designated supplier or distributor and establish appropriate credit terms with them. Bambu will provide a list of approved suppliers and the standards and specifications for items to be used, sold, or leased by the franchisee on or before the commencement of the onsite portion of the Training Program. The list of approved suppliers may vary depending on the franchised location within Bambu's national distribution network.

Bambu estimates that the cost of purchases from designated or approved sources may range from 3% to 10% of the total cost of establishing a Bambu shoppe. After the shoppe is established, the cost is estimated to be approximately 15% to 20% of the total operating costs. If a franchisee wants to purchase or use any inventory, products, equipment, supplies, materials, services, or programs that Bambu has not approved, they must notify Bambu in writing and obtain approval in advance. This notification should include sufficient specifications, photographs, drawings, and other information and samples to determine whether those items or those suppliers meet Bambu's specifications. The franchisee must pay a fee of $150 per hour per person for Bambu's testing and investigation, and reimburse Bambu for the actual cost of any testing and the reasonable cost of investigation, to determine whether those items or suppliers meet their specifications.