factual

What happens if circumstances beyond a Bambu franchisee's reasonable control delay the site selection and approval process?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

You must open your shoppe within one year after signing the Franchise Agreement. However, we may agree, in our sole discretion, to an extension of these deadlines upon a showing that you are making a diligent effort in obtaining a Franchised Location and opening the shoppe. If you fail to open your shoppe within one year, in our sole discretion, you may be required to pay us the monthly Royalty Fee and Marketing and Technology Fee. No contractual limit exists on the time it takes us to approve or disapprove your proposed location. However, we typically take no more than 10 business days to approve or disapprove your proposed location, and we may extend the deadline for opening your shoppe when circumstances beyond your reasonable control delay the site selection and approval process. (Sections 5.1, 5.8 and 7.1.b of the Franchise Agreement; Section 3.3 of the MUD Agreement.)

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–38)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, the franchisor may extend the deadline for opening a shoppe when circumstances beyond the franchisee's reasonable control delay the site selection and approval process.

However, franchisees are generally expected to locate and secure Bambu's approval of a site within 90 days of signing the Franchise Agreement and to open their shoppe within one year of signing. If a franchisee fails to open their shoppe within one year, Bambu has the sole discretion to require the franchisee to pay the monthly Royalty Fee and Marketing and Technology Fee.

This clause protects franchisees from penalties if delays arise from situations like permitting issues or landlord complications, but it's not a guarantee. Bambu retains the discretion to decide whether the circumstances justify an extension. Franchisees should maintain open communication with Bambu and document all efforts to secure a location to support any request for an extension.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.