For Bambu franchises in Hawaii, what condition must be met before the initial fees are payable?

According to Bambu's 2025 Franchise Disclosure Document, a specific condition applies to franchises operating in Hawaii regarding the payment of initial fees. The Hawaii Rider to the Franchise Agreement states that 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 any initial fees, such as the franchise fee, until Bambu has met its 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 of starting the franchise. It also aligns the franchisor's interests with the franchisee's success, as Bambu is incentivized to promptly fulfill its obligations to enable the franchisee to commence operations and generate revenue. This arrangement can be particularly helpful for new franchisees who may be concerned about cash flow during the initial stages of setting up their Bambu shop.

It's important for prospective franchisees in Hawaii to carefully review the franchise agreement and the Hawaii Rider to fully understand Bambu's initial obligations. These obligations typically include providing training, site selection assistance, and pre-opening support. Franchisees should also confirm with Bambu what specific actions constitute fulfillment of these initial obligations to ensure clarity on when the initial fees become payable. This deferral is specific to Hawaii, as other states may have different regulations or stipulations regarding the payment of initial franchise fees.