Does Bambu have the right to receive payments from suppliers based on the suppliers' dealings with Bambu franchisees?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
We and our affiliates have the right to receive payments from suppliers on account of their dealings with you and franchisees.
We have an agreement with the approved suppliers for the Proprietary Items for our franchisees, which provides that we will receive between 4 and 10 percent of the amount paid to the supplier by our franchisees for purchases depending on our required commitment to the suppliers. We reserve the right to receive other payments from these and other designated suppliers in the future. We and our affiliates may retain the credit of any rebate, incentive or volume discounts received as a result of your purchases and are not required to share it with our you or our other franchisees.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu and its affiliates have the right to receive payments from suppliers based on their dealings with franchisees. Bambu has purchasing arrangements to provide franchisees with proprietary and designated food and drink items, which franchisees must participate in. However, franchisees should not rely on any particular pricing arrangement or the availability of any particular product or brand.
If Bambu designates a third-party supplier and establishes a discount buying program, Bambu reserves the right to derive revenue from franchisee purchases of such products or menu items. Bambu also has an agreement with approved suppliers for Proprietary Items, where Bambu will receive between 4 and 10 percent of the amount paid to the supplier by franchisees for purchases, depending on Bambu's required commitment to the suppliers. Bambu reserves the right to receive other payments from these and other designated suppliers in the future.
Furthermore, Bambu and its affiliates may retain the credit of any rebate, incentive, or volume discounts received as a result of franchisee purchases and are not required to share it with franchisees. This arrangement is common in franchising, where franchisors negotiate deals with suppliers and receive payments or discounts based on the volume of purchases made by their franchisees. This can be a revenue stream for the franchisor, but it also means that the franchisee may not always receive the lowest possible price on goods and services.