For a Bambu franchise in Illinois, when is the payment of initial fees to Bambu Franchising LLC deferred until?

According to Bambu's 2025 Franchise Disclosure Document, franchisees in Illinois have the payment of initial fees deferred. Specifically, the initial fees payable to Bambu and its affiliates are deferred until Bambu has fulfilled all of its initial obligations to the franchisee. Additionally, the franchisee must have commenced doing business under the Franchise Agreement before the initial fees are due. This deferral requirement was imposed by the Illinois Attorney General's Office due to Bambu's financial condition.

This deferral of fees is a significant benefit for prospective franchisees in Illinois. It reduces the upfront financial burden and risk, as franchisees do not have to pay the initial fees until Bambu has met its obligations and the franchisee has started operating their Bambu shop. This arrangement provides some assurance that Bambu is committed to supporting the franchisee through the initial setup phase.

Furthermore, the Illinois Rider to the Franchise Agreement states that all initial fees payable to Bambu and any of its affiliates are deferred until Bambu has fulfilled all of its initial obligations to the franchisee and the franchisee has commenced business. This reinforces the protection for franchisees in Illinois, ensuring they are not required to pay initial fees until the business is operational and Bambu has met its contractual obligations. This condition is specific to Illinois due to Bambu's financial situation, as mandated by the Illinois Attorney General's Office.