How much notice will Bambu provide to the franchisee regarding a modification based on a Super-Majority approval?

According to Bambu's 2025 Franchise Disclosure Document, Bambu will provide franchisees with at least 30 days' notice before any modification to the Franchise Agreement takes effect, provided the modification has been approved by a Super-Majority of franchisees. A Super-Majority is defined as owners of at least 75% of all Bambu shoppe franchises and licenses, or if the modification only affects a portion of the shoppes, at least 75% of those affected.

This means that if a significant percentage of Bambu franchisees agree on a change, Bambu can implement that change across the board, even if an individual franchisee disagrees. The 30-day notice period allows franchisees some time to prepare for the change.

By signing the franchise agreement, franchisees also appoint the officers of Bambu as their attorneys in fact, granting them the power to execute any modifications approved by the Super-Majority. This clause underscores the importance of understanding the implications of the Super-Majority approval process, as it effectively allows a majority of franchisees, through Bambu's officers, to bind all franchisees to a modification of the agreement. This is a common practice in franchising, intended to allow the franchise system to adapt to changing market conditions while ensuring that individual franchisees cannot block beneficial changes. However, it also carries the risk that a franchisee may be forced to accept changes they do not agree with.