Does Bambu reserve the right to derive revenue from a franchisee's purchases?

According to Bambu's 2025 Franchise Disclosure Document, Bambu retains the right to generate revenue from a franchisee's purchases. This applies to purchases of food items, products, or programs, regardless of whether the franchisee buys them directly from Bambu, from Bambu's affiliates, or from another designated or approved source. This right exists irrespective of whether a formal purchase or buying arrangement has been established.

This clause means that Bambu could potentially receive a portion of the revenue generated from the supplies a franchisee buys, even if those supplies are not purchased directly from Bambu itself. This could impact the overall cost of goods for the franchisee, as the prices may be influenced by Bambu's revenue interests. Franchisees are required to buy from approved suppliers, and Bambu can derive revenue from these purchases.

Furthermore, if a franchisee wishes to use a supplier not already approved by Bambu, they must seek written approval from Bambu. Bambu can reject the supplier for any reason, including to protect its trade secrets or if the terms offered are not as favorable as those from current suppliers. Bambu may also charge the franchisee $150 per hour for each representative involved in testing and investigating a proposed new supplier, in addition to the reasonable costs incurred during the testing and investigation. This process ensures Bambu maintains control over the supply chain and can potentially benefit financially from franchisee purchases.