What are 'Institutional Facilities' according to the Bambu Franchise Disclosure Document?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- (d) to use and license others to use the Marks and Bambū system to establish shoppes at Institutional Facilities at any location. "Institutional Facilities" means outlets that serve primarily customers located within a captive facility, such as parks charging admission, stadiums, amusement parks, theaters, art centers, airports, transportation facilities, department stores, business and industrial complexes, museums, educational facilities, hospitals, military complexes, buyer club facilities, casinos, resorts, hotels, and convention centers.
Bambu, on behalf of itself, its affiliates and designees, reserves the right to contract with Institutional Facilities to develop and operate shoppes within these facilities; and
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, 'Institutional Facilities' are defined as outlets that primarily serve customers within a captive facility. These facilities include a variety of locations where people are likely to be a captive audience, such as parks charging admission, stadiums, amusement parks, theaters, art centers, airports, transportation facilities, department stores, business and industrial complexes, museums, educational facilities, hospitals, military complexes, buyer club facilities, casinos, resorts, hotels, and convention centers.
Bambu retains the right to establish shoppes within Institutional Facilities, either directly or through affiliates and designees. This means that while a franchisee may have rights to a specific territory, Bambu can still operate or contract with others to operate within these specified institutional locations, potentially within the same area as a franchised location.
For a prospective franchisee, this has important implications. It means that Bambu can compete with its own franchisees by opening locations in non-traditional venues like airports or hospitals, which could draw customers away from the franchisee's traditional store. It is important for potential franchisees to understand this clause and consider how it might affect their business before investing in a Bambu franchise. Franchisees should inquire about Bambu's strategy for developing these Institutional Facilities and how it might impact existing franchise locations.