What is the length of the initial franchise term for a Bambu Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (a) | Length of the franchise term | Section 18.1 of Franchise Agreement ("FA"); Section 4.1 of Multi-Unit Development Agreement ("MUDA") | 10 years for the Franchise Agreement. For the MUD Agreement, the term extends until the earlier of the date that you sign the Franchise Agreement for the final Bambū shoppe to be developed under the MUD Agreement or the deadline in the development schedule for signing that Franchise Agreement. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the initial term for a standard Franchise Agreement is 10 years. This means a new franchisee will operate their Bambu location under the terms of the agreement for that duration, assuming compliance with the agreement.
For franchisees entering into a Multi-Unit Development Agreement (MUDA), the term is different. The MUDA term extends until the earlier of two dates: either when the Franchise Agreement is signed for the final Bambu store to be developed under the MUDA, or the deadline specified in the development schedule for signing that final Franchise Agreement. This distinction is important for those planning to open multiple Bambu locations, as the development agreement's term is tied to the development schedule rather than a fixed period.
At the end of the initial 10-year franchise term, franchisees in good standing have the option to seek a successor franchise agreement, allowing them to continue operating their Bambu location. However, the terms of the renewal agreement may differ from the original, and the franchisee will need to meet certain conditions, such as remodeling the shoppe, attending additional training, and paying a fee. This is a fairly standard practice in franchising, as it allows the franchisor to update agreements to reflect current business practices and legal requirements.