Does Bambu's involvement in the lease negotiation and construction documents constitute a guarantee of the location's suitability or profitability?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
We will assist you in the negotiation and preparation of a letter of intent ("LOI") with the landlord for your Bambū shoppe. We will provide you a general workflow design or layout for the Franchised Location, typically after you have entered into the LOI for your Franchised Location and before you have signed the lease, provided that you have entered into the Franchise Agreement prior to signing the lease. We will also assist you in the review and negotiations of your lease, by providing you with recommendations and suggestions of lease terms. We must approve your LOI and lease prior to execution. We will provide you with additional consultation in relation to your final shoppe layout, equipment layout and mechanical drawings and other construction documents as we deem appropriate, and we must approve those documents before you submit them for permitting. Our involvement in the negotiation and approval of the lease and in our assistance with the construction documents for the Franchised Location does not constitute a recommendation, endorsement or guarantee by us of the suitability or profitability of the location or the lease, and you will need to take any additional steps necessary to ascertain whether such location and lease are acceptable to you.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–38)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu offers assistance in the lease negotiation and with construction documents. However, Bambu's involvement does not constitute a guarantee of the location's suitability or profitability.
Specifically, Bambu assists franchisees in negotiating and preparing a letter of intent with the landlord. They also provide a general workflow design or layout for the franchised location and assist in reviewing and negotiating the lease terms. Bambu must approve the letter of intent and lease before execution. Additionally, Bambu offers consultation regarding the final shop layout, equipment layout, mechanical drawings, and other construction documents, which also require their approval before submission for permitting.
The FDD explicitly states that Bambu's involvement in these processes does not represent a recommendation, endorsement, or guarantee of the location's suitability or profitability. The franchisee is ultimately responsible for taking any additional steps to determine if the location and lease terms are acceptable to them. This means that while Bambu provides support and guidance, the franchisee bears the final responsibility for assessing the viability of the location and ensuring the lease terms are favorable.
This is a common practice in franchising, where the franchisor provides support but the franchisee assumes the risk associated with their specific location. Prospective Bambu franchisees should conduct thorough due diligence, including market research and financial analysis, to ensure the location meets their business needs and financial goals.