Does Bambu have the right to form, change, and dissolve the Co-op?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Bambu also reserves the right to establish an advertising cooperative for a particular region to enable the cooperative to selfadminister the regional advertising 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 authority to form, change, and dissolve the regional advertising association, referred to as the "Co-op". This gives Bambu significant control over regional advertising and promotional campaigns.
Bambu can determine the geographic territories and market areas for these campaigns and require franchisees to participate in them. This means that franchisees may be obligated to take part in regional advertising programs established by Bambu.
Furthermore, Bambu reserves the right to seek reimbursement from the Co-op for reasonable administrative costs, salaries, and overhead related to the implementation and administration of the Co-op and marketing programs. Bambu also reserves the right to establish an advertising cooperative for a particular region to enable the cooperative to self-administer the regional advertising programs. This indicates that Bambu has broad discretion in managing and structuring regional advertising efforts and the associated costs.