What are the obligations of a Bambu franchisee related to new equipment, upgrading, and remodeling expenses as described in Item 6, and how do these relate to the restrictions on product sources outlined in Item 8?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
You agree to upgrade, remodel or replace the property and equipment used in operating the shoppe if requested by us on a system-wide basis. (Section 9.1.d and Section 10.1.h of the Franchise Agreement.)
Franchisee shall purchase all products, equipment, materials, supplies and programs required for the operation of the Bambū shoppe from Bambu, from Bambu's designated affiliates, or from Suppliers designated or approved by Bambu.
If you want to purchase or use any inventory, products, equipment, supplies, materials, services or programs we have not approved, or purchase or lease these items from a supplier who we have not approved, you must notify us in writing and obtain our approval in advance. The notification should include sufficient specifications, photographs, drawings and other information and samples to determine whether those items or those suppliers meet our specifications. You must pay us a fee of $150 per hour per person in our testing and investigation, and reimburse us for the actual cost of any testing and the reasonable cost of investigation, to determine whether those items or suppliers meet our specifications.
We estimate that the costs of your purchases from designated or approved sources, or according to our standards and specifications, may range from 3 percent to 10 percent of the total cost of establishing a Bambū shoppe and approximately 15 percent to 20 percent of the total cost of operating a Bambū shoppe after that time
One of our primary methods of communication with our franchisees is by small message service via email, text messages, or other electronic methods ("SMS"). Any standards and specifications communicated by SMS are deemed part of the FRC Materials, and you are required to comply with them.
Mandatory items include menu items and nutritional information, finishes, counter, POS/merchant service system, loyalty rewards program equipment, logoed paper products, uniforms, insurance, advertising materials, equipment, certain supplies and reports. You must obtain our prior written approval of your final plan, signage, and interior design.
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are obligated to upgrade, remodel, or replace property and equipment used in operating the shoppe if requested by Bambu on a system-wide basis. This obligation is detailed in Item 11.
Item 8 outlines restrictions on sources of products and services, stating that franchisees must purchase all products, equipment, materials, supplies, and programs required for the operation of the Bambu shoppe from Bambu, Bambu's designated affiliates, or from Suppliers designated or approved by Bambu. If a franchisee wants to use any inventory, products, equipment, supplies, materials, services or programs Bambu has not approved, they must notify Bambu in writing and obtain approval in advance. This notification should include sufficient specifications, photographs, drawings and other information and samples to determine whether those items or those suppliers meet Bambu's specifications. Bambu may impose a charge equal to $150 per hour per each representative of Bambu involved in the testing and investigation of a proposed new supplier request, and the franchisee is also required to pay the reasonable costs incurred by Bambu in connection with the testing and investigation.
These requirements mean that franchisees have limited autonomy in selecting equipment and supplies, and must adhere to Bambu's standards and approved suppliers. The estimated costs of purchases from designated or approved sources may range from 3% to 10% of the total cost of establishing a Bambu shoppe and approximately 15% to 20% of the total cost of operating a Bambu shoppe after that time. This can impact remodeling and upgrade expenses, as franchisees may not be able to source cheaper alternatives if Bambu requires specific vendors or equipment.
Bambu also communicates standards and specifications via email, text messages, or other electronic methods ("SMS"), which are deemed part of the Franchisee Resource Center Materials, and franchisees are required to comply with them. This includes mandatory items like menu items and nutritional information, finishes, counter, POS/merchant service system, loyalty rewards program equipment, logoed paper products, uniforms, insurance, advertising materials, equipment, certain supplies and reports. Franchisees must obtain Bambu's prior written approval of their final plan, signage, and interior design.