Is Bambu responsible for supervising the activities of the franchisee's Bambu shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
nt (or the course of conduct) be construed, to state or imply that Bambu is the employer of Franchisee's Authorized Representatives, or vice versa. Each of the parties agrees to file its own tax, regulatory and payroll reports with respect to its respective employees and operations. Notwithstanding any other provisions in this Agreement, Bambu shall not be responsible for supervising the activities of Franchisee's Bambū shoppe or ensuring that the Bambū shoppe is operated in compliance with applicable laws. Franchisee shall conspicuously post a notice in the shoppe identifying the Franchised Location as being individually owned and operated by Franchisee.
- 20.2 Payment of Third Party Obligations. Bambu shall have no liability for Franchisee's obligations to pay any third parties, including without limitation, any product vendors, or any sales, use, service, occupation, excise, gross receipts, income, property or other tax levied upon Franchisee, Franchisee's property, the Bambū shoppe or upon Bambu in connection with the sales made or business conducted by Franchisee (except any taxes Bambu is required by law to collect from Franchisee with respect to purchases from Bambu).
- 20.3 Indemnification.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu is not responsible for supervising the activities within a franchisee's Bambu shoppe. The franchisee is identified as the sole party responsible for the shoppe's operation and adherence to the law. Franchisees must post a notice stating that the location is independently owned and operated. This means the franchisee has autonomy over day-to-day operations.
Franchisees are responsible for recruiting, hiring, firing, and supervising their own employees, including Bambu Certified Team Leaders. These individuals are employees or agents of the franchisee, not Bambu, meaning Bambu is not considered a joint employer. The franchisee has control over aspects like compensation, terms of employment, safety regulations, and work schedules. While Bambu may offer suggestions, the franchisee has the discretion to implement them or not.
This arrangement means that Bambu franchisees have significant control over their business. However, they also bear the full responsibility for compliance with laws and regulations, as well as managing their employees. Franchisees are also expected to indemnify Bambu against any claims arising from the shoppe's operations or non-compliance with the franchise agreement. This includes violations of labor and employment laws.