Can Bambu withhold approval of a supplier for any reason?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
e any agreement as may be reasonably required by a Supplier and establish the appropriate credit terms with it.
- 14.6 Request to Approve Supplier. In the event Franchisee desires to purchase or use inventory, products, equipment, supplies, materials, services or programs from suppliers other than those previously approved by Bambu, Franchisee shall, prior to purchasing from or otherwise utilizing any supplier give Bambu a written request to approve the supplier. In the event Bambu rejects Franchisee's requested new supplier, Bambu must, within 60 days of the receipt of Franchisee's request to approve the supplier notify Franchisee in writing of its rejection. Bambu may continue from time to time to inspect any suppliers' facilities and products to assure compliance with Bambu's standards and specifications. Permission for such inspection shall be a condition of the continued approval of such supplier. Bambu may in its sole discretion elect to withhold approval of the supplier for any reason it determines, including for purposes of protecting its trade secrets or on the basis of the terms offered to Bambu itself or its franchisees from the proposed supplier compared to any current designated or approved supplier. In order to make such
determination, Bambu may require that samples from a proposed new supplier be delivered to Bambu for testing prior to approval and use. Bambu may impose a charge equal to $150 per hour per each representative of Bambu involved in the testing and investigation of a proposed new sup
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has the authority to withhold approval of a supplier for any reason. If a franchisee wants to use a supplier not already approved by Bambu, they must submit a written request for approval. Bambu has 60 days from receiving the request to notify the franchisee of its decision in writing.
Bambu may inspect a supplier's facilities and products to ensure they meet Bambu's standards. Permission for inspection is a condition of continued approval. Bambu can withhold approval for any reason, including protecting trade secrets or based on the terms offered to Bambu or its franchisees compared to current suppliers.
To determine whether to approve a supplier, Bambu may require samples for testing and can charge the franchisee $150 per hour for each Bambu representative involved in the testing and investigation. The franchisee is also responsible for covering Bambu's reasonable costs associated with the testing and investigation. This policy ensures Bambu maintains control over its supply chain and product quality, but it also gives them broad discretion in supplier selection, potentially impacting a franchisee's costs and sourcing options.