Risk Score
Pending analysis
Investment Range
$159,000 - $328,000
Franchise Fee
$39,000
Total US Locations
56
Business Summary
Bambū Franchising LLC operates Bambū shoppes, which are fast-casual Vietnamese beverage establishments. These shoppes sell a variety of freshly made Vietnamese dessert drinks called Chè, Vietnamese coffee, blended yogurts known as Yonami, Asian-inspired teas including Taiwanese bubble tea, and real fruit smoothies. All drinks feature fresh tapioca boba and proprietary ingredients. In addition to beverages, Bambū shoppes offer mochi waffles and other complementary snacks and desserts, providing a comfortable setting for social gatherings.
Corporate History
Bambū Franchising LLC was established in Colorado on December 29, 2014. The current Bambū system and its assets were acquired on May 1, 2015, from predecessor companies. These predecessors included Bambu Desserts & Drinks, Inc., which operated the original Bambū shoppe concept since 2009, and Bambu IP, LLC, formed in 2012, which managed their intellectual property. Franchising operations under the predecessor, Bambu Desserts & Drinks Franchise, Inc., began in June 2014 before the acquisition. Bambū Franchising LLC itself has been offering franchises for Bambū shoppes since 2015.
Financial Overview
Investment Range
$159,000 - $328,000
Franchise Fee (Low)
$39,000
Franchise Fee (High)
$49,000
Royalty %
3.5%
Equipment Costs (Low)
$68,000
Equipment Costs (High)
$223,000
Working Capital
$15,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Bambū Franchising LLC's financial condition, as presented in its financial statements, raises concerns about its ability to provide services and support to franchisees.
Financing Details
Bambū Franchising LLC does not offer any direct or indirect financing to its franchisees. Additionally, Bambū Franchising LLC does not guarantee any notes, leases, or other financial obligations for its franchisees.
Performance Metrics
Total US Locations
56
Franchised Units
56
Corporate Units
0
Avg Square Footage
1,250
Franchising Since
2015
Legal & Compliance Analysis
Recent Litigation
Yes
Bankruptcy
Yes
Litigation Count
3
Litigation Summary
Bambū Franchising LLC has disclosed three litigation cases. One case, filed in June 2022 by a Bambū franchisee in New Jersey, alleged that Bambū Franchising LLC violated an exclusive territory agreement. Bambū Franchising LLC denied the claims and countersued for breach of contract due to a shoppe closure. This case was settled in May 2024, resulting in the franchisee's agreement continuing with a redefined territory and other terms, including a potential payment from Bambū Franchising LLC upon transfer. Two other cases involved Bambū Franchising LLC's predecessors from 2015-2016, where they faced investigations by the Virginia State Corporation Commission and the Maryland Securities Division regarding licensee complaints. These investigations resulted in settlements in 2016, with Bambū Franchising LLC paying restitution and penalties on behalf of its predecessors, which were then partially reimbursed by the predecessors.
Bankruptcy History
Bambū Franchising LLC's Director of Franchise Services, Willy Mathew, and his wife filed for personal Chapter 13 bankruptcy reorganization in January 2015. The case was dismissed in August 2019 after the debtors were dismissed in June 2019 for failing to make plan payments.
Agreement Terms
Initial Term
10 years
Renewal Conditions
To renew their franchise, Bambū franchisees must provide timely notice to Bambū Franchising LLC, have no more than three defaults during their current agreement term, remodel their shoppe, attend any additional required training, pay a successor franchise fee of $15,000, and sign a new franchise agreement with the current terms and conditions, along with a Successor Franchise Rider that includes a general release of claims against Bambū Franchising LLC. The new agreement may have terms substantially different from the original contract.
Training & Support Program
Franchisor Assistance
Bambū Franchising LLC provides extensive support to its franchisees, starting with pre-opening assistance. This includes helping with site selection by providing criteria and approving proposed locations, as well as assisting with lease negotiations. Bambū Franchising LLC also offers standards and specifications for shoppe design, including kitchen workflow, equipment, and interior decor, and approves construction documents. Franchisees receive lists of approved suppliers for products and materials. Before opening, Bambū Franchising LLC conducts a pre-opening assessment, an owner orientation, and provides an 88-hour training program that combines classroom and on-the-job training, including 7.5 days of onsite support during the soft opening. Franchisees also get electronic access to the confidential Franchisee Resource Center (FRC) for operational materials and guidance on their initial marketing campaign. After opening, Bambū Franchising LLC offers continuing support through access to print and social media advertising materials, menu updates, creative designs for marketing, and recipes. Franchisees can receive consultation via SMS or telephone on operational matters, quality control, customer relations, and purchasing. Bambū Franchising LLC conducts periodic operational reviews, which may be unannounced, at the franchisee's shoppe. They also provide seminars on new methods and products, and updates on the Bambū system, including new menu items and products, sometimes requiring franchisees to upgrade or remodel their shoppes. Training is available for replacement or additional Bambū Certified Team Leaders, though a fee may apply. Bambū Franchising LLC may also provide pricing guidelines for products and permits the use of its proprietary system and trademarks.
Initial Training Hours
88
Training Location
Grand Prairie, TX, and at the franchisee's shoppe
Ongoing Support
After a Bambū shoppe opens, Bambū Franchising LLC provides continuing assistance to its franchisees. This includes access to print and social media advertising and promotional materials, menu updates, creative designs for marketing, and recipes. Franchisees can receive consultation via SMS or telephone about their shoppe's ongoing operations, product quality control, customer relations, and purchasing. Bambū Franchising LLC conducts periodic operational reviews, which may be unannounced, at the franchisee's shoppe. They also offer additional seminars or programs on new methods, equipment, and products, and provide updates on the Bambū system, including new menu items and products, sometimes requiring franchisees to upgrade or remodel their shoppes. Bambū Franchising LLC also offers training for replacement or additional Bambū Certified Team Leaders, though a tuition fee may apply, and requires franchisees to attend an annual meeting of all Bambū franchise owners.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Supervisory
Territory Type
Protected
Staffing Notes
Bambū Franchising LLC requires franchisees to have at least three designated Bambū Certified Team Leaders responsible for the shoppe's supervision and management. One of these Team Leaders must be available at all times upon Bambū Franchising LLC's demand, and at least one must be dedicated full-time to the shoppe, without other significant management responsibilities. Franchisees must also assign one or more qualified Shift Leaders to be present during all operating hours when a Bambū Certified Team Leader is not on site. Additionally, the franchisee and all Bambū Certified Team Leaders are required to obtain a food safety manager certification, such as ServSafe, at their own expense, before the shoppe opens and maintain it throughout the franchise term.