Under what conditions can Bambu unilaterally modify its standards and specifications for Bambu franchises as set forth in the FRC Materials?

According to Bambu's 2025 Franchise Disclosure Document, Bambu retains the right to unilaterally modify its standards, specifications, and operating, marketing, and other policies and procedures outlined in the Franchise Resource Center (FRC) Materials. This authority extends to any conditions and to the extent that Bambu, in its sole determination, deems necessary or desirable. These modifications can also include regional and local variations. Franchisees are obligated to incorporate these modifications into their shoppe operations and are bound by them.

This clause grants Bambu significant flexibility in adapting its franchise system to changing market conditions, competitive pressures, or evolving consumer preferences. For a franchisee, this means that the operational guidelines and requirements of their Bambu shoppe could change at any time, potentially requiring them to adapt their business practices, invest in new equipment, or alter their marketing strategies. The franchisee is bound by these changes.

The FDD also states that any standards and specifications, or changes to standards and specifications, that are communicated by SMS are deemed part of the FRC Materials, and Franchisee is required to comply with them. This highlights the importance of franchisees staying informed of all updates and communications from Bambu, as changes to operational standards can be delivered through various channels, including electronic messages.

While this unilateral modification right provides Bambu with agility, it also places a responsibility on the franchisor to implement changes reasonably and with consideration for the impact on franchisees. Prospective franchisees should seek clarity from Bambu regarding the types of modifications that have been implemented in the past, the typical frequency of changes, and the support provided to franchisees in adapting to new requirements. Understanding the scope and potential impact of these unilateral modification rights is crucial for any individual considering investing in a Bambu franchise.