What are the requirements for a Bambu franchisee to renew or extend their franchise term?
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. |
| (b) | Renewal or extension of the term | Sections 18.3 and 18.4 of FA | If you meet certain criteria, you may acquire successor franchise rights for the term stated in the then current Franchise Agreement. |
| (c) | Requirements for franchisee to renew or extend | Section 18.3 of FA | Provide notice to us, no more than 3 defaults, remodel shoppe, attend additional training, pay fee, sign new agreement and a Successor Franchise Rider in the form attached as Exhibit E containing a release. If you seek to acquire successor franchise rights, you may be required to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee may be able to acquire successor franchise rights if they meet certain criteria. The term length for the initial franchise agreement is 10 years. To renew, the franchisee must provide notice to Bambu, have no more than 3 defaults, remodel the shoppe, attend additional training, pay a fee, and sign a new agreement along with a Successor Franchise Rider, which includes a release. The Successor Franchise Rider is attached as Exhibit E to the FDD.
It is important to note that when a franchisee seeks to acquire successor franchise rights with Bambu, they may be required to sign a contract with terms and conditions that are materially different from their original franchise agreement. This means that the financial obligations, operational requirements, and other key aspects of the franchise could change upon renewal.
Prospective franchisees should carefully review Section 18.3 of the Franchise Agreement and Exhibit E to fully understand the requirements and potential changes in the new agreement. It is advisable to consult with an attorney or financial advisor to assess the implications of these changes before deciding to renew the franchise. Understanding these conditions is crucial for making an informed decision about the future of their Bambu franchise.