Does Bambu have the right to determine the geographic territories for regional advertising campaigns?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Co-op. The failure of Franchisee to participate in the Co-op or pay any dues required by the Co-op, may be deemed to be a breach of this Agreement. Bambu has the right, in its sole discretion, to determine the composition of all geographic territories and market areas for the implementation of such regional advertising and promotional campaigns and to require that Franchisee participate in such regional advertising programs as and when they may be established by Bambu. Bambu has the right, in its sole discretion, to form, change and dissolve the Co-op. If a regional advertising program is implemented on behalf of a particular region by Bambu, Bambu, to the extent reasonably calculable, will only use contributions from Bambū franchisees within such region for the particular regional advertising program. Bambu reserves the right to seek reimbursement from the Coop for reasonable administrative costs, salaries and overhead as Bambu may incur in activities related to the implementation and administration of the Co-op and marketing programs.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has the right to determine the geographic territories and market areas for regional advertising and promotional campaigns. Bambu can also require franchisees to participate in these regional advertising programs when established. This gives Bambu significant control over the scope and implementation of regional advertising efforts.
This means that Bambu franchisees may be required to participate in regional advertising programs determined by Bambu, and the geographic areas covered by these campaigns are also determined by Bambu. Franchisees must adhere to the decisions made regarding these programs.
Bambu also reserves the right to form, change, and dissolve advertising cooperatives (Co-ops). If a Co-op is established in the franchisee's area, the franchisee is required to participate. The programs and activities of the Co-op are subject to Bambu's approval, and franchisees are bound by the decisions of the majority of the Co-op members regarding expenditures, assessments, and dues, as long as Bambu approves them. Failure to participate in the Co-op or pay required dues can be considered a breach of the Franchise Agreement.