How does the pre-opening assistance offered by Bambu in Item 11 relate to the franchisee's obligations regarding site selection and lease acquisition as detailed in Item 9?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreements | Disclosure Document Item |
|---|---|---|
| (a) Site selection and acquisition/ lease | Sections 3.1, 5.1 and 5.2 of Franchise Agreement (“FA”); Section 3.3 of Multi-Unit Development Agreement (“MUDA”) | Items 8 and 11 |
| (b) Pre-opening purchases/leases | Sections 5.2, 5.3, 5.4, 5.5 and 5.6 of FA | Items 5, 6, 7 and 8 |
ITEM 11
FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING
Except as listed below, we are not required to provide you with any assistance.
Pre-Opening Assistance
Before you open your shoppe, we will:
-
- Once a Franchised Location is determined, designate your Protected Area, and, if applicable, your Development Area. (Section 3.2 of the Franchise Agreement; Section 1.1 of the MUD Agreement.)
-
- Assist you in locating the site for your shoppe by providing you with criteria for an acceptable site, by engaging on your behalf, or working with, a local real estate broker of your choosing or one provided by us, and by approving or disapproving your proposed site. You must use your best efforts to locate and obtain our approval of the Franchised Location within 90 days of signing the Franchise Agreement. You must open your shoppe within one year after signing the Franchise Agreement. However, we may agree, in our sole discretion, to an extension of these deadlines upon a showing that you are making a diligent effort in obtaining a Franchised Location and opening the shoppe. If you fail to open your shoppe within one year, in our sole discretion, you may be required to pay us the monthly Royalty Fee and Marketing and Technology Fee. No contractual limit exists on the time it takes us to approve or disapprove your proposed location. However, we typically take no more than 10 business days to approve or disapprove your proposed location, and we may extend the deadline for opening your shoppe when circumstances beyond your reasonable control delay the site selection and approval process. (Sections 5.1, 5.8 and 7.1.b of the Franchise Agreement; Section 3.3 of the MUD Agreement.)
-
- Assist you with the lease for your Franchised Location, by assisting you with the negotiations and preparation of the LOI for your lease, assisting you with the negotiation of the lease, providing you, among other things, an acceptable use clause, determining that the signage requirements allow for sufficient Bambū branding, negotiating relocation and other terms found in many leases, and other matters. (Sections 5.2 and 7.1.d of the Franchise Agreement.)
-
b.
Provision of specifications for a Franchised Location which shall include, without limitation, recommendations for space requirements, build out and the demographics and character of the surrounding market area.
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Item 11 outlines the pre-opening assistance Bambu provides to franchisees, which directly relates to the franchisee's obligations for site selection and lease acquisition as detailed in Item 9. Bambu offers assistance in locating a suitable site by providing criteria for an acceptable location, engaging a real estate broker, and approving or disapproving proposed sites. Franchisees are obligated to use their best efforts to locate and obtain Bambu's approval of the franchised location within 90 days of signing the Franchise Agreement.
Bambu also assists with the lease negotiation process, including preparing the Letter of Intent (LOI), negotiating lease terms, providing an acceptable use clause, ensuring adequate signage for branding, and negotiating relocation terms. However, the franchisee is ultimately responsible for negotiating and accepting the final lease terms and must obtain Bambu's prior written approval before executing any lease or LOI. Bambu may extend the deadline for opening the shoppe if the franchisee is making a diligent effort to secure a location.
Item 9 summarizes the franchisee's obligations, explicitly referencing site selection and acquisition/lease under Sections 3.1, 5.1, and 5.2 of the Franchise Agreement and Section 3.3 of the Multi-Unit Development Agreement, linking these obligations directly to Items 8 and 11 of the disclosure document. This indicates that the assistance described in Item 11 is designed to support franchisees in fulfilling their site-related obligations as defined in Item 9 and the referenced agreement sections. Bambu also provides specifications for a franchised location, including recommendations for space requirements, build-out, and the demographics of the surrounding market area.