What pre-opening obligations must Bambu fulfill before requiring payment of the initial franchise fee in Washington?

According to Bambu's 2025 Franchise Disclosure Document, a Washington rider to the franchise agreement addresses the payment of initial fees. Due to Bambu's financial condition, the Securities Administrator of the State of Washington requires that Bambu defer the payment of all initial fees until Bambu has completed its initial obligations under the Franchise Agreement and the franchisee's Bambu shoppe opens. This measure assures Bambu's financial capability to fulfill its obligations in establishing and opening the Bambu shoppe.

This means that in Washington, a franchisee will not be required to pay any initial fees, such as the initial franchise fee, until Bambu has met all of its pre-opening obligations as outlined in the Franchise Agreement. These obligations typically include site selection assistance, training, providing operations manuals, and other support necessary to get the franchise location up and running.

For a prospective franchisee in Washington, this is a significant benefit as it reduces the upfront financial risk. The franchisee can be more confident that Bambu is committed to providing the necessary support and resources to launch the business before any initial fees are paid. This arrangement aligns the franchisor's interests with the franchisee's success, as Bambu is incentivized to ensure the shoppe opens successfully.