What section of the Bambu FDD discusses approved or designated suppliers?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 14.5 Approved or Designated Suppliers.
Franchisee shall purchase all products, equipment, materials, supplies and programs required for the operation of the Bambū shoppe from Bambu, from Bambu's designated affiliates, or from Suppliers designated or approved by Bambu.
If there is no designated or approved Supplier for a particular product, piece of equipment, ingredient, food item, supply, material or program, Franchisee shall propose, for prior written approval by Bambu, such other suppliers who meet all of Bambu's specifications and standards as to quality, composition, finish, appearance and service, and who shall adequately demonstrate their capacity and ability to supply Franchisee's needs in the quantities, at the times, and with the reliability requisite to an efficient operation of the Bambū shoppe.
Bambu reserves the right to derive revenue from Franchisee's purchases of food items, products or programs, whether the purchase is from Bambu, Bambu's affiliate or another designated or approved source and irrespective of whether a formal purchase or buying arrangement has been established.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Item 23, specifically section 14.5, addresses the topic of approved or designated suppliers. This section stipulates that franchisees must acquire all necessary products, equipment, materials, supplies, and programs for operating their Bambu shop from either Bambu itself, its designated affiliates, or suppliers that Bambu has officially designated or approved.
If a specific item lacks a designated or approved supplier, the franchisee is required to propose alternative suppliers to Bambu for written approval. These proposed suppliers must meet all of Bambu's standards regarding quality, composition, appearance, and service. Additionally, they must demonstrate their ability to reliably supply the franchisee's needs in the required quantities and at the necessary times to ensure efficient operation of the Bambu shop.
Bambu retains the right to collect revenue from franchisee purchases, regardless of whether these purchases are made directly from Bambu, its affiliates, or other approved sources. This revenue collection is independent of any formal purchase or buying arrangement. Furthermore, Bambu maintains the authority to inspect suppliers' facilities and products to ensure they comply with Bambu's standards and specifications, with continued approval contingent upon allowing such inspections.