In Maryland, under what condition are Bambu franchisees' initial franchise fees and payments deferred?

According to Bambu's 2025 Franchise Disclosure Document, in Maryland, the Maryland Securities Commissioner requires a financial assurance due to Bambu's financial condition. As a result, all initial franchise fees and payments owed by franchisees in Maryland are deferred until Bambu completes its pre-opening obligations under the franchise agreement. This means a new Bambu franchisee in Maryland will not have to pay the initial franchise fee upfront. Instead, they can delay payment until Bambu has fulfilled its responsibilities, such as site selection assistance, training, and providing operations manuals. This lessens the initial financial burden on the franchisee and reduces their risk if Bambu fails to deliver on its pre-opening obligations. This condition applies to both the initial franchise fees for a single unit and any development fees for area developers until the first franchise under the development agreement opens.

This deferral is a significant benefit for franchisees in Maryland, as it aligns the payment of fees with the progress of the franchise setup. It also provides a level of protection, ensuring that franchisees are not paying for services that Bambu has not yet provided. This type of financial assurance is not typical in all states, as it is based on the assessment of the franchisor's financial stability by the Maryland Securities Commissioner.

Prospective franchisees should carefully review the specific pre-opening obligations outlined in the franchise agreement to fully understand when the initial fees become due. They should also consider this deferral in their financial planning, as it affects the timing of their initial investment. It is also important to note that this deferral is specific to Maryland and does not apply to franchisees in other states unless similar conditions are in place.