How is the Protected Area for a Bambu franchise defined?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Bambu's reservation of rights described in Section 3.4 below, Bambu shall not establish and operate, or franchise another person or entity to establish and operate, a Bambū shoppe within the geographic area described in Attachment I, attached hereto (the "Protected Area").
However, nothing in this Agreement restricts any Bambu-owned or franchised Bambū shoppes from advertising in, or soliciting customers from, Franchisee's Protected Area.
Franchisee does not have exclusive rights to the customers in its Protected Area.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee is granted a protected area. The specific geographic area that constitutes the protected area is described in Attachment I of the franchise agreement. Within this protected area, Bambu agrees not to establish or franchise another party to establish another Bambu location, subject to certain reservations of rights. However, it's important to note that existing franchise agreements may remain in effect, and Bambu may renew or enter into successor agreements for these existing locations, even within a franchisee's development area.
Despite having a protected area, Bambu franchisees do not have exclusive rights to the customers within that area. Other Bambu locations, whether company-owned or franchised, are not restricted from advertising in or soliciting customers from a franchisee's protected area. This means that while Bambu will not open another store within the defined area, competition from other Bambu stores through marketing efforts is still possible.
Bambu also retains several rights that could impact the protected area. These include the right to use and license the Bambu system for operations outside the protected area, to use different proprietary marks or methods, and to establish restaurants similar to Bambu stores that service walk-up and drive-thru customers but without indoor seating (a "Drive-Thru shoppe") at any location. If Bambu intends to open a Drive-Thru shoppe in the franchisee's development area, they will offer the franchisee the 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 like airports or convention centers at any location.
Relocation of a franchised location is also subject to Bambu's approval, and any approved new location must not be within another Bambu store's protected area. This ensures that relocation does not infringe upon the territorial rights of other franchisees. Overall, while Bambu offers a protected area, franchisees should be aware of the various exceptions and reserved rights that could affect their market.