Who is ultimately responsible for negotiating and accepting the final terms of the LOI and lease for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
We will assist you with negotiations of the LOI for the lease for your Franchised Location and in the lease negotiations and review. Our assistance involves suggestions and recommendations concerning the terms and conditions of the LOI and the lease provisions. It ultimately is your responsibility, however, to negotiate and accept the final terms of these documents. We will review and provide our suggestions to any lease or sublease ("Lease") for the Franchised Location of your shoppe before you sign the Lease. In particular, the Lease must include a use clause acceptable to us and signage criteria that provides for adequate branding of the Bambū name. Our involvement in the negotiation and approval of the lease for the Franchised Location does not constitute a recommendation, endorsement or guarantee by us of the suitability or profitability of the location or the lease, and you will need to take any additional steps necessary to
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, while Bambu will assist franchisees with the negotiation of the Letter of Intent (LOI) and the lease for the franchised location, the franchisee is ultimately responsible for negotiating and accepting the final terms of these documents. Bambu's assistance includes providing suggestions and recommendations regarding the terms and conditions of both the LOI and the lease provisions.
This means that while Bambu offers support and guidance during the leasing process, the final decision-making authority rests with the franchisee. The franchisee must conduct their own due diligence, potentially including consulting with their own legal counsel, to ensure the location and lease terms are suitable and profitable for their specific circumstances. Bambu's involvement does not constitute a guarantee of the location's suitability or profitability.
Furthermore, the FDD states that the lease must include a use clause acceptable to Bambu and signage criteria that provide for adequate branding of the Bambu name. The franchisee must also provide Bambu with a copy of the signed lease within 15 days of signing. This highlights the importance of close collaboration with Bambu during the leasing process to ensure compliance with their requirements while retaining ultimate responsibility for the lease terms.