Bambu
Bambu offers franchises for Vietnamese dessert drinks, coffee, yogurts, and Asian-inspired teas in shops called Bambu shoppes. Known for its tapioca boba and mochi waffles, it operates in the quick-serve restaurant sector.
Bambu franchise FAQ
How much does it cost to open one — the total initial investment?
The total initial investment necessary to begin operation of a Bamb ū franchised business ranges from $159,000 to $328,000 [p.1]. For businesses opened pursuant to a Multi-Unit Development Agreement, the range is slightly lower at $149,000 to $318,000 [p.1].
What is the initial franchise fee?
The initial franchise fee is $49,000, due in four installments as specified. This fee represents payment for the initial grant of rights and services provided by Bambu [p.13, p.60].
What are the ongoing royalty and advertising fees?
The ongoing royalty fee is 3.5% of the franchisee's Net Revenues, payable monthly [p.72]. Additionally, there is a fixed marketing and technology fee for purchasing advertising and providing certain technological services to franchisees, which is also billed monthly [p.175].
How long is the initial franchise agreement, and can I renew it?
The term of the franchise agreement is currently 10 years [p.174]. The franchisor has the right to refuse to renew the franchise without fairly compensating the franchisee, but this only applies if the term of the franchise is less than five years and certain conditions are met [p.5(D)].
Can I sell or transfer my franchise, and what does that require?
According to the FDD, you cannot transfer your franchise without Bambu's prior written consent, which they may not unreasonably withhold [p.81]. You must provide at least 30 days' notice of any proposed transfer, along with specific information about the transferee and their qualifications [p.110]. Good cause for refusal to permit a transfer includes but is not limited to unspecified reasons [p.5].
On what grounds can the franchisor terminate the agreement?
According to [p.5], a franchisor may terminate a franchise prior to expiration only for good cause, which includes the failure of the franchisee to comply with lawful provisions of the franchise agreement and curing such failure after receiving written notice and a reasonable opportunity (no more than 30 days) to do so.
What financial requirements — net worth and liquid capital — do I need to qualify?
You need to have adequate working capital to develop, open, and operate your Bambū shoppe as independently verified by you [p.144]. There is no specific requirement mentioned for the franchisor's net worth in relation to franchisee qualifications; however, if the franchisor's unaudited financial statements show a net worth of less than $100,000, they must arrange for the escrow of initial investment and other funds at the request of a franchisee [p.6]. This isn't specified in the excerpts regarding your personal financial requirements beyond working capital.
Do I get an exclusive or protected territory?
No, you do not receive an exclusive territory [p.39]. However, there is a Protected Area designated for you where Bambu will not establish other Bambū shoppes without certain exceptions [p.58-59]. This Protected Area is not an exclusive territory and does not prevent competition from other franchisees or outlets owned by Bambu [p.39, 187].
What training and ongoing support does the franchisor provide?
The franchisor provides initial training, including a pre-assessment construction/remodeling review, an owner orientation, and approximately two days of owner training at a designated Bambu shoppe location. Additionally, there is on-site observation, guidance, and consultation for about seven and a half days around the time your shoppe commences operation, along with soft opening support [p.29].
How many franchised outlets are there, and how many have closed or been terminated?
This isn't specified in the excerpts.
Does the franchisor share any financial performance or earnings information?
The franchisor may share financial performance data with other franchisees under certain circumstances, such as for research purposes or at conventions [p.80]. However, the franchisor does not make any representations about a franchisee's future financial performance or the past financial performance of company-owned or franchised outlets [p.47].
What am I restricted to selling, and where must I buy supplies?
You are restricted to offering and selling only those products and services approved by Bambū, as specified in [p.43]. You must purchase certain ingredients, coffee, teas, powders, syrups, shoppe supplies, and Bambū branded products from the designated suppliers or through the methods prescribed by Bambū, as mentioned in [p.20] and [p.17].