What section of the Bambu Franchise Disclosure Document discusses Approved or Designated Suppliers?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Bambu will advise Franchisee within a reasonable time whether such products, programs, materials, forms, items or supplies meet its specifications.
- 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. Franchisee must execute any agreement as may be reasonably required by a Supplier and establish the appropriate credit terms with it.
- 14.6 Request to Approve Supplier. In the event Franchisee desires to purchase or use inventory, products, equipment, supplies, materials, services or programs from suppliers other than those previously approved by Bambu, Franchisee shall, prior to purchasing from or otherwise utilizing any supplier give Bambu a written request to approve the supplier. In the event Bambu rejects Franchisee's requested new supplier, Bambu must, within 60 days of the receipt of Franchisee's request to approve the supplier notify Franchisee in writing of its rejection. Bambu may continue from time to time to inspect any suppliers' facilities and products to assure compliance with Bambu's standards and specifications. Permission for such inspection shall be a condition of the continued approval of such supplier. Bambu may in its sole discretion elect to withhold approval of the supplier for any reason it determines, including for purposes of protecting its trade secrets or on the basis of the terms offered to Bambu itself or its franchisees from the proposed supplier compared to any current designated or approved supplier. In order to make such
determination, Bambu may require that samples from a proposed new supplier be delivered to Bambu for testing prior to approval and use. Bambu may impose a charge equal to $150 per hour per each representative of Bambu involved in the testing and investigation of a proposed new supplier request, and Franchisee shall also be required to pay the reasonable costs incurred by Bambu in connection with the testing and investigation.
14.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Item 14.5, titled "Approved or Designated Suppliers," outlines the requirements for purchasing products, equipment, materials, supplies, and programs necessary for operating a Bambu shop. Franchisees are required to make these purchases from Bambu, its designated affiliates, or suppliers that Bambu has designated or approved. This ensures consistency and quality across all franchise locations. If a specific item lacks a designated or approved supplier, franchisees must seek written approval from Bambu for any alternative suppliers they propose.
Bambu retains the right to earn revenue from franchisee purchases, regardless of whether the purchase is made directly from Bambu, an affiliate, or another approved source. This applies irrespective of any formal purchase or buying arrangement. This provision highlights Bambu's potential financial interest in the supply chain and the importance of adhering to approved suppliers.
Item 14.6 addresses the process for requesting approval of a new supplier. If a franchisee wishes to purchase from a supplier not already approved by Bambu, they must submit a written request for approval before making any purchases. Bambu has 60 days from the receipt of the request to notify the franchisee of its decision in writing. Bambu may inspect suppliers' facilities and products to ensure they meet the company's standards, with permission for inspection being a condition of continued approval. Bambu may withhold approval for any reason, including protecting trade secrets or based on the terms offered compared to current suppliers. To evaluate a proposed supplier, Bambu may require samples for testing and may charge the franchisee $150 per hour per Bambu representative involved in the testing and investigation, in addition to the reasonable costs incurred during the process.