According to the addendum for Hawaii, when are the initial fees payable to Bambu?

According to Bambu's 2025 Franchise Disclosure Document, the Hawaii Rider to the Franchise Agreement includes a modification regarding the payment of initial fees. Specifically, all initial fees payable to Bambu are deferred until Bambu has fulfilled all of its initial obligations to the franchisee. This means that a new Bambu franchisee in Hawaii will not be required to pay the initial franchise fee or any other initial fees until Bambu has completed its pre-opening obligations as outlined in the Franchise Agreement.

This deferral of initial fees provides a significant benefit to franchisees in Hawaii, as it reduces the upfront financial burden and risk associated with starting a new franchise. It ensures that franchisees are not required to pay fees until Bambu has provided the necessary support and resources to help them get their business up and running. This arrangement aligns the interests of both parties, as Bambu is incentivized to fulfill its obligations promptly to receive payment.

This condition is specific to Hawaii due to the state's franchise laws, as indicated in Exhibit L of the FDD. Prospective franchisees should carefully review the Hawaii Rider to fully understand their rights and obligations, and should also consult with a franchise attorney to ensure they are making an informed decision. This deferral is a notable deviation from the standard practice of paying initial fees upfront in many franchise systems.