Does the Bambu Disclosure Document include a Successor Franchise Rider to the Franchise Agreement as an exhibit?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Issuance Date: March 31, 2025 I received a Disclosure Document dated March 31, 2025, that included the following Exhibits: Franchise Agreement (Exhibit A); Multi-Unit Development Agreement (Exhibit B); Nondisclosure and Noncompetition Agreement (Exhibit C); Closing Acknowledgment (Exhibit D); Successor Franchise Rider to Franchise Agreement (Exhibit E); Form of General Release (Exhibit F); Owner Operations Manual Table of Contents (Exhibit G); List of Franchisees (Exhibit H); List of Franchisees Who Have Left the System (Exhibit I); Financial Statements (Exhibit J); List of State Agencies/Agents for Service of Process (Exhibit K); and State Addenda to Disclosure Document (Exhibit L). Date: Signature of Prospective Franchisee (Do not leave blank) Print Name
Source: Item 22 — (FDD page 52)
What This Means (2025 FDD)
Yes, according to Bambu's 2025 Franchise Disclosure Document, a Successor Franchise Rider to the Franchise Agreement is included as Exhibit E. This is confirmed in the receipt that a prospective franchisee signs to acknowledge receiving the FDD and its exhibits.
The inclusion of a Successor Franchise Rider as an exhibit suggests that Bambu has a process in place for franchisees to renew or extend their franchise agreements under certain conditions. This rider likely outlines the terms, fees, and requirements for obtaining a successor franchise, which could include upgrades, additional training, and executing a general release of claims against Bambu.
Furthermore, Item 23 references that the franchisee must execute a successor franchise rider in a form designated by Bambu, which contains a general release of any and all claims against Bambu and its affiliates. The franchisee must also pay a successor franchise fee concurrently with the execution of the successor franchise agreement. The FDD also states that the franchisee may exercise its option for a successor franchise by giving written notice to Bambu not more than 270 nor less than 180 days prior to the scheduled expiration of the Franchise Agreement.
Prospective franchisees should carefully review Exhibit E and related sections of the Franchise Agreement to understand their rights and obligations regarding franchise renewal. They should also inquire about the specific terms and conditions of the Successor Franchise Rider, including any fees, requirements, and potential limitations on their ability to renew their franchise agreement.