Does Bambu's involvement in the negotiation or approval of a lease for the Franchised Location constitute a guarantee of the suitability or profitability of the location for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Bambu will provide Franchisee assistance with the negotiation and review of a letter of intent for the lease, and the lease, for the Franchised Location, as Bambu determines appropriate in its discretion. Bambu's assistance will include suggestions and recommendations concerning the terms and conditions of the letter of intent and lease provisions. It ultimately is the responsibility of Franchisee to negotiate and accept the final terms of the lease and related documents. Franchisee must obtain Bambu's prior written approval before executing any letter of intent or lease for the Franchised Location. If Franchisee leases the Franchised Location, Franchisee shall ensure that the lease for the Franchised Location contains a use clause approved by Bambu and signage criteria that provides for adequate branding of the Bambū shoppe. While Bambu's assistance may include recommendations to protect Franchisee under the terms of the lease, Franchisee acknowledges that Bambu's involvement in the negotiation or approval of a lease for the Franchised Location is primarily for Bambu's benefit only and does not constitute a recommendation, endorsement or guarantee by Bambu of the suitability or profitability of the location, the lease. Franchisee should take all steps necessary to
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu offers assistance with the negotiation and review of the lease for the Franchised Location. This assistance includes suggestions and recommendations concerning the terms and conditions of the lease provisions. However, it is ultimately the franchisee's responsibility to negotiate and accept the final terms of the lease and related documents, and the franchisee must obtain Bambu's prior written approval before executing any letter of intent or lease for the Franchised Location.
Bambu's involvement in the negotiation or approval of a lease for the Franchised Location is primarily for Bambu's benefit only and does not constitute a recommendation, endorsement, or guarantee by Bambu of the suitability or profitability of the location, or the lease. The FDD emphasizes that the franchisee should take all necessary steps to ascertain whether such location and lease are acceptable to the franchisee, which may include engaging their own legal counsel to review the letter of intent and lease.
This means that while Bambu provides support during the lease negotiation process, franchisees should not rely solely on Bambu's input. They should conduct their own due diligence, seek independent legal advice, and carefully evaluate the suitability and potential profitability of the location before committing to a lease. This is a common practice in franchising, where the franchisee bears the ultimate responsibility for the success of their individual location.