How long must a prospective Bambu franchisee possess the Franchise Agreement before executing it?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If Bambu Franchising LLC ("Bambu") offers you a franchise, it must provide this Disclosure Document to you 14 calendar days before you sign a binding agreement with, or make a payment to, the franchisor, or an affiliate, in connection with the proposed franchise sale.
New York requires that we give you this Disclosure Document at the earlier of the first personal meeting or 10 business days before the execution of the franchise or other agreement or the payment of any consideration that relates to the franchise relationship.
Michigan requires that we give you this Disclosure Document at least 10 business days before the execution of any binding franchise or other agreement or the payment of any consideration, whichever occurs first.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, prospective franchisees must be provided with the Disclosure Document, which includes the Franchise Agreement, at least 14 calendar days before signing a binding agreement or making a payment to Bambu or its affiliates related to the franchise sale. This 14-day period allows potential franchisees to thoroughly review the Franchise Agreement and seek professional advice before committing to the franchise. Certain states, such as New York and Michigan, have their own specific requirements regarding the timing of Disclosure Document delivery.
In New York, Bambu must provide the Disclosure Document at the earlier of the first personal meeting or 10 business days before the execution of the franchise agreement or the payment of any consideration related to the franchise relationship. Similarly, Michigan requires that Bambu provide the Disclosure Document at least 10 business days before the execution of any binding franchise agreement or the payment of any consideration, whichever occurs first. These state-specific regulations aim to provide additional protection to franchisees by ensuring they have sufficient time to review the franchise documents before making any financial commitments.
The Receipt included in the FDD serves as an acknowledgment that the prospective franchisee has received the Disclosure Document. By signing the Receipt, the franchisee confirms they have been provided with the necessary information to make an informed decision. This receipt includes a list of exhibits, such as the Franchise Agreement, Multi-Unit Development Agreement, and Financial Statements, which are part of the Disclosure Document. The franchisee must sign and date the Receipt to confirm they have received all the listed documents.
It is important for prospective Bambu franchisees to carefully review the Disclosure Document and all associated agreements, including the Franchise Agreement, within the specified timeframes. Seeking legal and financial advice during this review period can help franchisees understand their rights and obligations under the franchise agreement and make an informed decision about investing in a Bambu franchise.