What restrictions are placed on the use of the Franchised Location for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee's Protected Area. Franchisee does not have exclusive rights to the customers in its Protected Area.
- 3.3 Limitation on Franchise Rights. The rights that are granted to Franchisee are for the specific Franchised Location and Protected Area and cannot be transferred to an alternative Franchised Location and Protected Area, or any other location, without the prior written approval of Bambu, which approval may be withheld for any reason, in Bambu's sole discretion. Franchisee shall not operate another shoppe, offer products or services which are part of the Bambū system at any site other than the Franchised Location, fill wholesale orders, sell products or services by mail order or through catalogs or the Internet, offer products or services at temporary venues, transship or reship products, or offer any other type of off-site service or sale of products. Franchisee may offer catering or utility third party app delivery or other online delivery programs only in compliance with Bambu's standards and specifications for offering such programs.
- 3.4 Bambu's Reservation of Rights. Franchisee acknowledges that its franchise rights as granted are non-exclusive and that Bambu, for itself, its affiliates and successors, retains the rights, among others and without payment of compensation to Franchisee:
- a. to use, and to license others to use, the Marks and Bambū system in connection with the operation of a Bambū shoppe, at any location other than within the Protected Area;
- b. to use the Marks to identify any type of products and services, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution (other than Bambū shoppes), at any location, and on any terms and conditions as Bambu determines including, but not limited to, sales through channels such as wholesale or retail distribution, Internet marketing and distribution, social media marketing, mail order, catalog, retail store display, or made-to-order or pre-packaged product sales in grocery stores, at any location;
- c. to use and license the use of different proprietary marks or methods (for example, if Bambu acquires or is acquired by another business that provides products and services similar to or the same as a shoppe) in connection with the sale of products and services similar to or the same as those which Franchisee sells, whether in alternative channels of distribution or through owning, developing, operating or franchising stores which are the same as, or similar to, or different from Bambū shoppes, at any location, and on any terms and conditions as determined by Bambu;
- d. to use and to license others to use the Marks and Bambū system to establish restaurants similar to Bambū shoppes that service walkup and drive-thru customers but without indoor seating (a "Drive-thru shoppe"), at any location, including in Franchisee's Protected Area; provided that if Bambu desires to open or permit someone else to open a Drive-thru shoppe in Franchisee's Protected Area, Bambu will give Franchisee a right of first refusal to participate in the Drive-thru shoppe with either partial or whole ownership thereof;
- e. to use and license others to use the Marks and Bambū system to establish shoppes at Institutional Facilities at any location.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, several restrictions are placed on the use of the Franchised Location. The franchisee's rights are specific to the approved Franchised Location and Protected Area, and these rights cannot be transferred to another location without Bambu's prior written approval, which Bambu may withhold for any reason.
The franchisee is prohibited from operating another shoppe or offering products/services of the Bambu system at any location other than the Franchised Location. Specifically, franchisees cannot fill wholesale orders, sell via mail order, catalogs, the Internet, temporary venues, or engage in product transshipment or other off-site sales, except for catering or approved third-party delivery services that comply with Bambu's standards.
Bambu retains the right to use and license others to use the Marks and Bambu system outside the franchisee's Protected Area. Bambu can also use and license different proprietary marks or methods, including those from acquired businesses, to sell similar products/services through different channels or store types. Bambu also reserves the right to establish restaurants similar to Bambu shoppes that service walkup and drive-thru customers but without indoor seating (a "Drive-Thru shoppe"), at any location, including in Franchisee's Development Area; provided that if Bambu desires to open or permit someone else to open a Drive-Thru shoppe in Franchisee's Development Area, Bambu will give Franchisee a right of first refusal to participate in the Drive-Thru shoppe with either partial or whole ownership thereof; and to use and license others to use the Marks and Bambū system to establish shoppes at Institutional Facilities at any location. Franchisees must also ensure that all signage complies with local ordinances, lease covenants, and Bambu's standards, requiring Bambu's prior written approval for any modifications.