factual

Is Bambu's involvement in the lease negotiation a guarantee of the location's suitability or profitability?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

We will assist you with negotiations of the LOI for the lease for your Franchised Location and in the lease negotiations and review. Our assistance involves suggestions and recommendations concerning the terms and conditions of the LOI and the lease provisions. It ultimately is your responsibility, however, to negotiate and accept the final terms of these documents. We will review and provide our suggestions to any lease or sublease ("Lease") for the Franchised Location of your shoppe before you sign the Lease. In particular, the Lease must include a use clause acceptable to us and signage criteria that provides for adequate branding of the Bambū name. Our involvement in the negotiation and approval of the lease 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, which may include engaging your own legal counsel. A copy of any signed Lease must be delivered to us within 15 days after you sign it.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, Bambu assists franchisees with the negotiation of the Letter of Intent (LOI) and the lease for the franchised location. This assistance includes suggestions and recommendations regarding the terms and conditions of both the LOI and the lease provisions. Bambu will also review and provide suggestions to any lease or sublease before the franchisee signs it, ensuring that the lease includes a use clause acceptable to Bambu and signage criteria that provides for adequate branding.

However, Bambu's involvement in the negotiation and approval of the lease does not constitute a recommendation, endorsement, or guarantee of the suitability or profitability of the location or the lease. The FDD emphasizes that it remains the franchisee's responsibility to ascertain whether the location and lease are acceptable, which may include engaging their own legal counsel. Franchisees must also deliver a copy of any signed lease to Bambu within 15 days after signing.

This disclaimer is a standard practice in franchising. While Bambu offers support in the lease negotiation process, the ultimate responsibility for assessing the location's potential and the lease terms rests with the franchisee. This means prospective franchisees should conduct their own due diligence, including market research, financial analysis, and legal review, to ensure the location meets their business needs and financial goals. Engaging experienced professionals can help franchisees make informed decisions and mitigate potential risks associated with the location and lease agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.