What are the conditions under which Bambu will not require or accept payment of any initial franchise fees in Washington?

According to Bambu's 2025 Franchise Disclosure Document, franchisees in Washington will not be required to pay initial franchise fees until certain conditions are met. Specifically, Bambu will defer the payment of all initial fees until it has fulfilled its initial obligations under the Franchise Agreement, and the franchisee's Bambū shoppe has opened. This deferral is due to a determination by the Securities Administrator of the State of Washington regarding Bambu's financial condition and its ability to fulfill its obligations to franchisees during the establishment and opening phase of the Bambū shoppe.

This arrangement provides a level of financial protection for franchisees in Washington. By deferring the initial franchise fee, Bambu assumes a greater share of the initial risk. The franchisee is not obligated to pay the fee until Bambu has demonstrated its ability to support the franchisee in establishing the business and until the store is actually open and operating.

This condition is outlined in the Washington Rider to the Franchise Agreement, which adds a statement to Section 4.1 of the agreement. This rider is specific to Washington and reflects the state's regulatory oversight to protect franchisees, given Bambu's financial condition. Prospective franchisees in Washington should carefully review this rider and understand the implications of this deferral for their investment and the overall franchise agreement.