What is the written notice period Bambu provides before creating a regional advertising association (Co-op)?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 13.4 Regional Advertising Programs.
Bambu reserves the right, upon 30 days prior written notice to applicable franchisees, to create a regional advertising association ("Co-op") for the benefit of Bambū franchisees located within a particular geographic area.
If a Co-op is established for the area where Franchisee is located, Franchisee will be required to participate in the Co-op for the purpose of selecting and participating in regional marketing and promotion programs for Bambū shoppes, which programs and other Co-op activities are subject to the approval of Bambu.
Franchisee will be required to remain a member of and be bound by the decisions of the majority of the members of the Co-op regarding expenditures, assessments and dues of the Co-op, to the extent that they are approved by Bambu.
Each Co-op has the right, by majority vote, to require its members to pay monthly dues to the Co-op.
The failure of Franchisee to participate in the Co-op or pay any dues required by the Co-op, may be deemed to be a breach of this Agreement.
Bambu has the right, in its sole discretion, to determine the composition of all geographic territories and market areas for the implementation of such regional advertising and promotional campaigns and to require that Franchisee participate in such regional advertising programs as and when they may be established by Bambu.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu reserves the right to create a regional advertising association, or "Co-op", for franchisees in a specific geographic area. Prior to establishing a Co-op, Bambu will provide franchisees with 30 days prior written notice.
If a Co-op is established in the franchisee's area, participation is mandatory. Franchisees are obligated to engage in regional marketing and promotion programs for Bambu shops, with these programs and other Co-op activities subject to Bambu's approval. Franchisees must adhere to the decisions made by the majority of Co-op members regarding expenditures, assessments, and dues, provided that Bambu approves these decisions.
Each Co-op has the authority to mandate monthly dues from its members through a majority vote. Failure to participate in the Co-op or pay the required dues may be considered a breach of the Franchise Agreement. Bambu retains the right to determine the geographic territories and market areas for regional advertising and promotional campaigns and can require franchisees to participate in these programs when established.