Does Bambu reserve the right to receive payments from designated suppliers in the future?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have the right to receive payments from suppliers on account of their dealings with you and franchisees.
We have an agreement with the approved suppliers for the Proprietary Items for our franchisees, which provides that we will receive between 4 and 10 percent of the amount paid to the supplier by our franchisees for purchases depending on our required commitment to the suppliers. We reserve the right to receive other payments from these and other designated suppliers in the future. We and our affiliates may retain the credit of any rebate, incentive or volume discounts received as a result of your purchases and are not required to share it with our you or our other franchisees.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu does reserve the right to receive payments from designated suppliers in the future. The document states that Bambu and its affiliates have the right to receive payments from suppliers based on the suppliers' dealings with franchisees.
Bambu has an existing agreement with approved suppliers of Proprietary Items, where they receive between 4 and 10 percent of the payments made by franchisees to these suppliers, depending on Bambu's commitment to the suppliers. Bambu also reserves the right to receive other payments from these and other designated suppliers in the future. Furthermore, Bambu and its affiliates can retain any rebates, incentives, or volume discounts received due to franchisee purchases, and they are not obligated to share these with the franchisees.
This arrangement means that a portion of a franchisee's payments to designated suppliers could be directed to Bambu as revenue. While this is a fairly common practice in franchising, prospective franchisees should consider how these arrangements might affect their overall costs and profitability. It is important to understand the specific percentages or amounts Bambu receives from suppliers, and how these might change over time, as Bambu retains the right to modify these arrangements.