What is the initial term length of the Bambu Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
18. TERM AND EXPIRATION
- 18.1 Term.
The term of this Agreement is for a period of 10 years from the date of this Agreement, unless sooner terminated as provided herein.
Franchisee agrees to operate the Bambū shoppe for the entire term of this Agreement.
- 18.2 Continuation.
If for any reason, Franchisee continues to operate the shoppe beyond the term of this Agreement or any subsequent successor franchise period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' written notice or as required by law.
If said holdover period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period.
Upon termination after any hold-over period, Franchisee and those in active concert with Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 19.3, 19.4, 21.2 and 21.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
- 18.3 Rights Upon Expiration.
At the end of the initial term hereof Franchisee may acquire successor franchise rights for an additional term (provided Bambu does not refuse to offer a successor franchise in accordance with Section 18.5 below), if Franchisee complies with all of the following:
- a.
At least 30 days prior to expiration of the term, executes the form of Franchise Agreement then in use by Bambu (for the same type of franchise as granted by this Agreement or an equivalent type then offered as determined by Bambu), which may have terms substantially different than those set forth in this Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the initial term of the Franchise Agreement is 10 years. This term begins from the date the Franchise Agreement is signed, unless the agreement is terminated earlier according to its provisions. Bambu requires the franchisee to operate the shoppe for the entire 10-year duration of the agreement.
After the initial 10-year term, the franchisee may have the option to acquire successor franchise rights for an additional term. To do so, the franchisee must execute the current form of the Franchise Agreement at least 30 days before the expiration of the initial term. The terms in the new agreement may differ substantially from the original agreement.
If a franchisee continues to operate the Bambu shoppe beyond the initial term, or any subsequent franchise period, without a new agreement, the operation will be considered on a month-to-month basis. This holdover arrangement is subject to termination with a 30-day written notice, or as required by law. If the holdover period exceeds 90 days, Bambu can immediately terminate the agreement, unless a longer period is required by applicable law. Upon termination after any hold-over period, the franchisee is subject to post-termination obligations outlined in the agreement.