Who is ultimately responsible for the final decision regarding the selection of a suitable site for a Bambu franchise, according to the Closing Acknowledgment?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
roval of a Franchised Location, as may be determined in Bambu's sole but reasonable business judgment.
- 5.2 Approval of Site Acquisition or Lease. Bambu will provide Franchisee assistance with the negotiation and review of a letter of intent for the lease, and the lease, for the Franchised Location, as Bambu determines appropriate in its discretion. Bambu's assistance will include suggestions and recommendations concerning the terms and conditions of the letter of intent and lease provisions. It ultimately is the responsibility of Franchisee to negotiate and accept the final terms of the lease and related documents. Franchisee must obtain Bambu's prior written approval before executing any letter of intent or lease for the Franchised Location. If Franchisee leases the Franchised Location, Franchisee shall ensure that the lease for the Franchised Location contains a use clause approved by Bambu and signage criteria that provides for adequate branding of the Bambū shoppe. While Bambu's assistance may include recommendations to protect Franchisee under the terms of the lease, Franchisee acknowledges that Bambu's involvement in the negotiation or approval of a lease for the Franchised Location is primarily for Bambu's benefit only and does not constitute a recommendation, endorsement or guarantee by Bambu of the suitability or profitability of the location, the lease. Franchisee should take all steps necessary to
ascertain whether such location and lease are acceptable to Franchisee, which may include engaging its own legal counsel to review the letter of intent and lease. Franchisee shall deliver a copy of the signed lease for the Franchised Location to Bambu within 15 days of its execution.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, while Bambu provides assistance with site selection, the franchisee is ultimately responsible for negotiating and accepting the final terms of the lease and related documents. Bambu assists with the negotiation and review of the letter of intent for the lease, offering suggestions and recommendations. However, the final decision rests with the franchisee.
This means that a prospective Bambu franchisee needs to be diligent in evaluating potential locations and lease terms. While Bambu offers support, their involvement doesn't constitute a guarantee of the location's suitability or profitability. Franchisees should conduct their own due diligence, potentially including engaging their own legal counsel to review the lease and letter of intent.
This arrangement is fairly typical in franchising, where the franchisor provides guidance but the franchisee bears the ultimate responsibility for their business's success. The franchisee must ascertain whether the location and lease are acceptable, understanding that Bambu's assistance is primarily for Bambu's benefit, ensuring adequate branding and compliance with their standards. The franchisee must deliver a copy of the signed lease to Bambu within 15 days of its execution and notify Bambu when they take possession of the location.