What are 'Institutional Facilities' as defined in the Bambu FDD?

According to Bambu's 2025 Franchise Disclosure Document, 'Institutional Facilities' are defined as locations that primarily serve customers within a captive facility. Bambu retains the right to establish shoppes at these Institutional Facilities, even within a franchisee's protected area or development area.

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 to understand because Bambu can license others to establish shoppes in these locations, potentially creating competition within what might otherwise be considered the franchisee's territory.

This right allows Bambu to tap into markets that a traditional retail location might not reach, such as captive audiences in locations like hospitals or amusement parks. While this benefits Bambu by expanding its brand presence and revenue streams, it also means that franchisees may face competition from Bambu-authorized outlets in non-traditional locations, even within their protected or development areas. Franchisees should consider the potential impact of these Institutional Facilities on their business when evaluating the franchise opportunity and assessing the market in their designated area.