Can Bambu require a franchisee to participate in regional advertising programs?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Co-op. The failure of Franchisee to participate in the Co-op or pay any dues required by the Co-op, may be deemed to be a breach of this Agreement. Bambu has the right, in its sole discretion, to determine the composition of all geographic territories and market areas for the implementation of such regional advertising and promotional campaigns and to require that Franchisee participate in such regional advertising programs as and when they may be established by Bambu. Bambu has the right, in its sole discretion, to form, change and dissolve the Co-op. If a regional advertising program is implemented on behalf of a particular region by Bambu, Bambu, to the extent reasonably calculable, will only use contributions from Bambū franchisees within such region for the particular regional advertising program. Bambu reserves the right to seek reimbursement from the Coop for reasonable administrative costs, salaries and overhead as Bambu may incur in activities related to the implementation and administration of the Co-op and marketing programs. Bambu also reserves the right to establish an advertising cooperative for a particular region to enable the cooperative to selfadminister the regional advertising programs.
- 13.5 Initial Marketing and Promotional Campaign. Franchisee shall conduct an initial marketing and promotional program for the Bambū shoppe at or around the time that the shoppe opens. Franchisee's initial marketing and promotional campaign will utilize the marketing and public relations programs and media and advertising materials that Bambu has developed or that Bambu otherwise approves. In Bambu's sole discretion, it may provide a grand opening program administered by a public relations company at or
shortly after Franchisee has had its soft opening. Franchisee must budget, prepare an initial marketing plan, and reserve and spend a minimum of $5,000 for an initial opening marketing, public relations, and social media influencer program within the first 120 days after opening.
- 13.6 Electronic Advertising.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has the right to require franchisees to participate in regional advertising programs. Bambu can determine the geographic territories and market areas for these campaigns. If Bambu establishes a regional advertising cooperative (Co-op), franchisees in that area must participate and adhere to the Co-op's decisions regarding expenditures, assessments, and dues, as long as Bambu approves these decisions.
Franchisees are required to remain members of the Co-op and are bound by the majority decisions concerning the Co-op's financial matters, provided Bambu approves them. Failure to participate in the Co-op or pay the required dues may be considered a breach of the franchise agreement.
Bambu also retains the right to form, change, and dissolve the Co-op. If a regional advertising program is implemented, Bambu will use contributions from franchisees within that specific region for that program. Bambu can seek reimbursement from the Co-op for administrative costs, salaries, and overhead related to the Co-op's implementation and marketing programs. This structure gives Bambu significant control over regional advertising efforts and ensures franchisee participation.