What is a Protected Area for a Bambu franchise defined by?

According to Bambu's 2025 Franchise Disclosure Document, a Protected Area is a geographic region designated in the Franchise Agreement where Bambu will not establish or franchise another party to establish another Bambu store. The Protected Area's definition can vary, as it may be defined by a radius around the store, zip code boundaries, street boundaries, or similar designations. The placement of a Bambu store and the designation of its Protected Area depend on demographic and market conditions around the proposed franchised location. These conditions include population density, the number of competitors and other food businesses in the market, site availability, traffic, access, and growth potential.

While Bambu grants a Protected Area, it's important to note that this area is not an exclusive territory. Franchisees may face competition from other franchisees, company-owned outlets, alternative distribution channels, or competitive brands controlled by Bambu. Bambu retains the right to use and license others to use the Bambu system at locations outside the Protected Area. They can also use the Marks to identify products and services through alternative channels of distribution, such as retail, wholesale, internet marketing, and social media.

Bambu also retains the right to establish restaurants similar to Bambu stores that service walk-up and drive-thru customers without indoor seating (Drive-thru shoppes) at any location, including within a franchisee's Protected Area. However, if Bambu desires to open or permit someone else to open a Drive-thru shoppe in a franchisee's Protected Area, they will give the franchisee a right of first refusal to participate in the Drive-thru shoppe with either partial or whole ownership. Additionally, Bambu can establish stores at Institutional Facilities, such as parks, stadiums, airports, department stores, educational facilities, and hospitals, even within a franchisee's Protected Area.

Prospective franchisees should be aware that the Protected Area does not grant exclusive rights to any particular market or customers. Franchisees can advertise their Bambu store in any geographic area and serve all customers who enter their store, subject to reasonable restrictions and policies. These restrictions may include electronic advertising, the content and methods used for advertising, and limitations on advertising outside the Protected Area. Other Bambu franchisees have the same rights to conduct advertising anywhere and provide programs and products to all persons who enter their stores, subject to any restrictions set forth in the FRC Materials.