If a Bambu Franchise Agreement is executed before a site is selected, what area will Bambu designate?

According to Bambu's 2025 Franchise Disclosure Document, if a Franchise Agreement is executed before a site is selected and approved, Bambu will designate a 'Designated Area' within which the franchisee must find a Franchised Location. However, the FDD clearly states that this designation does not grant any continuing territorial rights to the franchisee within that Designated Area. This means that while Bambu will provide an initial area for the franchisee to search for a location, the franchisee doesn't have any exclusive rights to that area.

This is an important consideration for prospective franchisees because it means that even within the Designated Area, another Bambu franchise could potentially be established. The franchisee's actual Protected Area, which does offer some territorial protection, is only defined after the Franchised Location is approved. The size and shape of the Protected Area depend on demographic and market conditions.

Therefore, a franchisee needs to understand that the initial Designated Area is simply a temporary search zone, not a guaranteed territory. The actual Protected Area, which provides limited territorial protection, will only be determined after the final location is approved. This distinction is crucial for assessing the potential for competition and the overall viability of the franchise.