What are the specific obligations of a Bambu franchisee regarding site selection and lease acquisition as detailed in Item 9, and how do these relate to the franchisor's assistance in locating a site as described in Item 11?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section in Agreements | Disclosure Document Item |
|---|---|---|
| (a) Site selection and acquisition/ lease | Sections 3.1, 5.1 and 5.2 of Franchise Agreement (“FA”); Section 3.3 of Multi-Unit Development Agreement (“MUDA”) | Items 8 and 11 |
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including site selection and acquisition/lease, as detailed in Sections 3.1, 5.1, and 5.2 of the Franchise Agreement and Section 3.3 of the Multi-Unit Development Agreement. These obligations are further discussed in Items 8 and 11 of the FDD.
Bambu franchisees are responsible for locating a suitable franchised location within 90 days of signing the agreement, subject to Bambu's approval, although Bambu may extend this deadline if the franchisee is diligently seeking a location. The franchisee must submit site information, including the address, site plan, terms sheet, demographics, and other materials requested by Bambu for approval. Bambu's approval does not guarantee the site's suitability or profitability. If Bambu disapproves a site, the franchisee will be given additional time to find an acceptable location.
Bambu provides assistance with negotiating and reviewing the letter of intent and the lease for the franchised location, offering suggestions and recommendations on terms and conditions. However, the franchisee is ultimately responsible for negotiating and accepting the final lease terms and must obtain Bambu's written approval before executing any letter of intent or lease. The lease must include a use clause approved by Bambu and signage criteria that allows for adequate branding of the Bambu shoppe. While Bambu offers recommendations to protect the franchisee, its involvement is primarily for its own benefit and does not guarantee the location's suitability or profitability.
Item 11 details the assistance Bambu provides, including help with negotiating the letter of intent and reviewing the lease, along with providing a general workflow design after the LOI is signed but before the lease. Bambu also offers consultation on the final shoppe layout, equipment layout, and mechanical drawings, requiring approval before submission for permitting. However, Bambu emphasizes that its involvement does not constitute a guarantee of the location's success or profitability, and franchisees must take additional steps to ensure the location and lease are acceptable to them.