Who is responsible for the costs of a Bambu franchisee's participation in the customer loyalty rewards program?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee shall participate in Bambu's customer loyalty rewards program and be responsible for the costs of such participation.
In addition, Franchisee shall honor any coupons, customer loyalty rewards program points or credits, discounts, or other authorized promotional offers of Bambu at Franchisee's sole cost unless otherwise specified in writing by Bambu.
Franchisee acknowledges that Bambu frequently implements such promotions intended to increase customer awareness and build business on an international, national, regional, or local level, and Franchisee's participation in these promotions is essential to their success.
Franchisee acknowledges that Bambu has no obligation to reimburse Franchisee for the costs associated with participating in these promotions.
From time to time a promotion may not benefit all franchisees in the Bambū system; and if the promotion is not offered in the region, or another unknown hardship arises, Bambu may, at Bambu's option, exempt Franchisee and/or other franchisees on a case-by-case basis.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are responsible for the costs associated with participating in the customer loyalty rewards program. Specifically, the franchisee must participate in Bambu's customer loyalty rewards program and bear the costs of that participation.
Additionally, franchisees are obligated to honor any coupons, customer loyalty rewards program points or credits, discounts, or other authorized promotional offers at their own expense, unless Bambu specifies otherwise in writing. This means that franchisees must absorb the costs of these promotions, which could impact their profitability.
Bambu implements promotions to increase customer awareness and build business on various levels (international, national, regional, or local). The FDD emphasizes that franchisee participation in these promotions is essential for their success. However, Bambu has no obligation to reimburse franchisees for the costs incurred while participating in these promotions. While participation is typically mandatory, Bambu may exempt a franchisee from a promotion on a case-by-case basis if the promotion is not offered in the franchisee's region or if another hardship arises.
Franchisees are also required to follow the guidelines provided by Bambu's designated providers for these programs, including purchasing related equipment and software. They must also adhere to the operational methods for the program, provide transaction information to Bambu, and maintain accurate records of transactions made through the program. This ensures that the loyalty program is implemented consistently across all franchise locations and that Bambu can track its effectiveness.