What section outlines the conditions under which Bambu will offer the franchisee a right of first refusal for a Drive-Thru shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) To use and to license others to use the Marks and Bambū system to establish restaurants similar to Bambū shoppes that service walkup and drive-thru customers but without indoor seating (a "Drive-Thru shoppe"), at any location, including in Franchisee's Development Area; provided that if Bambu desires to open or permit someone else to open a Drive-Thru shoppe in Franchisee's Development Area, Bambu will give Franchisee a right of first refusal to participate in the Drive-Thru shoppe with either partial or whole ownership thereof;
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Item 23 discusses the right of first refusal for a Drive-Thru shoppe. Specifically, if Bambu intends to open or allow someone else to open a Drive-Thru shoppe within a franchisee's Development Area, Bambu will grant the franchisee the first right of refusal. This allows the franchisee the opportunity to participate in the Drive-Thru shoppe, either through partial or whole ownership.
This right is significant for prospective franchisees as it provides a potential avenue for expansion and increased revenue within their designated area. By having the first option to participate in a Drive-Thru shoppe, franchisees can leverage their existing knowledge of the local market and customer base. This can lead to a more successful and profitable venture compared to allowing an outside party to establish the Drive-Thru location.
However, it's important to note that this right is contingent on Bambu's decision to open or permit a Drive-Thru shoppe in the franchisee's Development Area. The franchisee does not have the right to demand a Drive-Thru shoppe. The terms and conditions of participation, whether through partial or whole ownership, would likely be subject to negotiation and agreement between Bambu and the franchisee at the time the opportunity arises. Franchisees should clarify with Bambu the specific criteria and process for exercising this right of first refusal to fully understand their options and obligations.