What are 'Institutional Facilities' in the context of Bambu franchise agreements?

According to Bambu's 2025 Franchise Disclosure Document, 'Institutional Facilities' are defined as outlets that primarily serve customers within a captive facility. Bambu reserves the right to establish shoppes in these locations.

These facilities encompass a wide array of venues, including 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. This definition is important for prospective franchisees as it clarifies the types of locations where Bambu may directly operate or license others to operate, potentially impacting a franchisee's market and customer base.

Bambu retains the right to contract with these Institutional Facilities to develop and operate shoppes. This means that while a franchisee may have a specific territory, Bambu can still establish a presence within these defined facilities, which could present both opportunities and potential competition for the franchisee. Franchisees should consider this when evaluating the potential market and revenue projections for their franchise location.

Understanding this definition is crucial for prospective franchisees to assess the potential impact on their business. It is important to discuss with Bambu the strategy for developing locations within Institutional Facilities and how it might affect the franchisee's operations and market share.