Under the Bambu agreement, what right does Bambu grant to the franchisee?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
the right to operate a Bambū shoppe at such location under the terms and conditions which are contained in this Agreement.
2. GRANT OF FRANCHISE
- 2.1 Grant of Franchise. Bambu grants to Franchisee, and Franchisee accepts from Bambu, the right to use the Marks and Bambū system in connection with the establishment and operation of one Bambū shoppe, at the location described in Article 3 of this Agreement. Franchisee agrees to use the Marks and Bambū system, as they may be changed, improved, and further developed by Bambu from time to time, only in accordance with the terms and conditions of this Agreement.
- 2.2 Scope of Franchise Operations. Franchisee shall at all times comply with Franchisee's obligations hereunder and shall continuously use best efforts to promote and operate the Bambū shoppe. Franchisee shall utilize the Marks and Bambū system to operate all aspects of the business franchised hereunder in accordance with the methods and systems developed and prescribed from time to time by Bambu, all of which are a part of the Bambū system. Franchisee's Bambū shoppe shall offer all products and services as Bambu designates and shall be restricted from offering or selling any products and services not previously approved by Bambu in writing. If Franchisee is a corporation, partnership, limited liability company or other entity, Franchisee shall not engage in any business other than the operation of a Bambū shoppe.
3. FRANCHISED LOCATION AND TERRITORIAL RIGHTS
3.1 Franchised Location. Franchisee is granted the right and franchise to own and operate a Bambū shoppe at the address and location which shall be set forth in Attachment I, attached to this Agreement ("Franchised Location"). If, at the time of execution of this Agreement, the Franchised Location cannot be designated as a specific address because a location has not been selected and approved, then Franchisee
shall promptly take steps to choose and acquire a location for its Bambū shoppe within the "Designated Area," set forth in Attachment I. In such circumstances, Franchisee shall select and propose to Bambu for Bambu's prior written approval a specific location for the Franchised Location which, once approved by Bambu, shall then be described in the rider to Attachment I.
- 3.2 Protected Area. Subject to Bambu's reservation of rights described in Section 3.4 below, Bambu shall not establish and operate, or franchise another person or entity to establish and operate, a Bambū shoppe within the geographic area described in Attachment I, attached hereto (the "Protected Area"). However, nothing in this Agreement restricts any Bambu-owned or franchised Bambū shoppes from advertising in, or soliciting customers from, Franchisee's Protected Area. Franchisee does not have exclusive rights to the customers in its Protected Area.
- 3.3 Limitation on Franchise Rights. The rights that are granted to Franchisee are for the specific Franchised Location and Protected Area and cannot be transferred to an alternative Franchised Location and Protected Area, or any other location, without the prior written approval of Bambu, which approval may be withheld for any reason, in Bambu's sole discretion. Franchisee shall not operate another shoppe, offer products or services which are part of the Bambū system at any site other than the Franchised Location, fill wholesale orders, sell products or services by mail order or through catalogs or the Internet, offer products or services at temporary venues, transship or reship products, or offer any other type of off-site service or sale of products. Franchisee may offer catering or utility third party app delivery or other online delivery programs only in compliance with Bambu's standards and specifications for offering such programs.
- 3.4 Bambu's Reservation of Rights.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu grants the franchisee the right to use the Marks and the Bambu system to establish and operate one Bambu Shoppe at a specific location. The franchisee must use the Marks and Bambu system according to the terms and conditions outlined in the agreement, and as Bambu may change or improve the system over time. The franchisee is obligated to promote and operate the Bambu Shoppe using their best efforts.
The franchisee must utilize the Marks and Bambu system to operate all aspects of the franchised business according to the methods and systems prescribed by Bambu. The Bambu Shoppe must offer all products and services that Bambu designates and is restricted from offering or selling any products and services not previously approved by Bambu in writing. If the franchisee is a corporation, partnership, limited liability company, or other entity, they cannot engage in any business other than the operation of a Bambu Shoppe.
Bambu also grants the franchisee the right to operate at a specific address, which will be set forth in an attachment to the agreement. If the location is not yet determined when the agreement is executed, the franchisee must take steps to choose and acquire a location within a designated area, subject to Bambu's written approval. Bambu also defines a protected area, within which Bambu will not establish or franchise another entity to establish a Bambu Shoppe, subject to certain reservations of rights. However, existing Bambu-owned or franchised shoppes are not restricted from advertising or soliciting customers in the franchisee's protected area, and the franchisee does not have exclusive rights to customers in their protected area.
The rights granted to the franchisee are specific to the franchised location and protected area and cannot be transferred to another location without Bambu's prior written approval. The franchisee is restricted from operating another shoppe or offering products or services related to the Bambu system at any site other than the franchised location. They are also prohibited from filling wholesale orders, selling products or services by mail order, through catalogs, or the Internet, offering products or services at temporary venues, transshipping or reshipping products, or offering any other type of off-site service or sale of products, unless it complies with Bambu's standards.