Is Bambu obligated to provide assistance in the selection and approval of a Franchised Location beyond providing recommendations and approving or disapproving the location?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that Bambu shall have no other obligation to provide assistance in the selection and approval of a Franchised Location other than the provision of such recommendations and approval or disapproval of a proposed Franchised Location, which approval or disapproval shall be based on information submitted to Bambu in a form sufficient to assess the proposed location as may be reasonably required by Bambu.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu's obligation in the selection and approval of a franchised location is limited to providing recommendations and either approving or disapproving the proposed location. This approval or disapproval is based on the information the franchisee submits, which Bambu deems sufficient to assess the location. Bambu does not have any obligation to select or acquire a location on behalf of the franchisee.
Bambu will provide specifications for the Franchised Location, including recommendations for space requirements, build out, and the demographics and character of the surrounding market area. Bambu also assists with the development of a required kitchen workflow design, equipment specifications, an interior design guide, and consultation regarding the final architectural plans. Additionally, Bambu offers assistance with negotiating the letter of intent for the lease and the lease itself, including providing an acceptable use clause and determining if signage requirements allow for sufficient Bambu branding.
While Bambu offers assistance with site selection, site feasibility studies, and lease negotiations, this additional assistance is at Bambu's sole discretion. If Bambu agrees to provide such assistance, the franchisee is responsible for paying all associated fees, including travel, lodging, living expenses, telephone charges, and a fee based on the time spent by Bambu's employees. This arrangement means that while Bambu provides essential support for location selection, franchisees may incur extra costs for more extensive help.
Prospective franchisees should note that Bambu's review and acceptance of a site do not constitute a warranty of the site's suitability for a Bambu shoppe. The franchisee is ultimately responsible for ensuring the location and lease terms are acceptable, including seeking legal counsel to review the letter of intent and lease. This highlights the importance of conducting thorough due diligence and not solely relying on Bambu's approval when selecting a location.