How does the pre-opening assistance provided by Bambu in Item 11 relate to the franchisee's obligation to comply with territory restrictions as described in Item 12?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ion and consultation as described in Article 6 above after a determination by Bambu that the shoppe is sufficiently completed to schedule training.
- 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. 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.
- c. Assistance with the development of a required kitchen workflow design, equipment specifications for Franchisee to use in designing the layout for the Franchised Location, an interior design guide, and consultation regarding the final architectural plans for the Franchised Location, as described in Section 5.3.
- d. Assistance with the negotiation of the letter of intent for the lease for the Franchised Location and the lease, providing Franchisee an acceptable use clause, determining whether the signage requirements allow for sufficient Bambū branding, negotiating relocation and other terms found in leases, and other matters, as described in Section 5.2.
- e. Information regarding the selection of raw and prepared ingredients, food items, shoppe supplies, and programs offered, used, sold or leased through Franchisee's Bambū shoppe. After execution of this Agreement, Bambu will provide Franchisee with a list of approved Suppliers, if any, of such equipment, items, materials, inventory and programs and, if available, a description of any regional or central purchase and supply agreements offered by such approved Suppliers for the benefit of Bambū franchisees. The list of approved Suppliers may vary depending on Franchisee's Franchised Location within Bambu's distribution network.
- f. Provision of electronic access to Bambu's FRC Materials, defined and described in Section 8.1 below.
- g. Assistance in determining the scope of and approach to Franchisee's initial marketing campaign for the opening of the Bambū shoppe including access to previously approved marketing materials.
8. RESOURCE CENTER MATERIALS
8.1 FRC Materials. Bambu shall make available to Franchisee Bambu's confidential Owner Operations Manual ("Owner Operations Manual" or "OOM"). The Owner Operations Manual and our policy releases shall be made available via our Franchise Resource Center ("FRC") that Franchisee will have password access to at www.bambufrc.com. The FRC contains Bambu's FRC Blog, FRC Forum, notices, marketing materials, artwork, health compliance plan and information, and ordering platform, as well as other manuals, technical and news bulletins and other written or electronic materials (collectively
referred to as "FRC Materials"), covering certain standards, specifications and operating and marketing procedures that Bambu requires Franchisee to utilize in developing and operating its Bambū shoppe. The FTC Materials may be modified in Bambu's sole discretion. The FRC Materials are designed to protect Bambu's reputation and the goodwill of the Marks, they are not designed to control the day-to-day operations of Franchisee's Bambū shoppe.
What This Means (2025 FDD)
Based on the 2025 FDD, Bambu provides pre-opening assistance that directly relates to a franchisee's franchised location, which in turn affects their territorial rights and obligations. Bambu offers specifications for the franchised location, including recommendations for space requirements, build-out, and the demographics of the surrounding market area. Bambu also assists with kitchen workflow design, equipment specifications, interior design, and consultation on architectural plans. Furthermore, Bambu provides assistance in negotiating the lease, including acceptable use clauses and signage requirements. These services ensure the franchisee's location is suitable and aligned with Bambu's brand standards.
Item 12 clarifies that the designation of the franchised location does not grant exclusive rights to any particular market or customers. Franchisees can advertise in any geographic area and serve all customers who enter their shoppe, but Bambu may place restrictions on electronic advertising, content, and methods used for marketing, and limitations on advertising outside the protected area. Franchisees cannot use channels like the internet or direct marketing to make sales outside their protected area without written consent. This means that while Bambu helps in selecting a suitable location, the franchisee's ability to market and sell is subject to Bambu's policies and potential restrictions, ensuring brand consistency and preventing encroachment on other franchisees' areas.
If a franchisee wishes to relocate their Bambu shoppe, they need written consent from Bambu and must pay a relocation fee of $15,000. Upon approval and payment, Bambu will provide similar new shoppe operations support, including two site visits and three days of additional training. The approval of the new location will be based on factors similar to those used for the initial location. Even if the existing shoppe is closed during relocation, the franchisee remains responsible for Royalty Fee payments, although the Marketing and Technology Fee will be waived until the relocated shoppe opens. This highlights that Bambu retains control over location decisions and provides support to ensure the new location meets their standards, while the franchisee must bear the costs and continue royalty payments during the transition.