What are the requirements for a Bambu franchisee to renew or extend the franchise term?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (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 seeking to renew their franchise agreement must meet several requirements. These stipulations are detailed in Section 18.3 of the Franchise Agreement.
To renew, a Bambu franchisee must provide notice to the company and must not have more than three defaults on record. The franchisee is also required to remodel their shoppe to meet current brand standards, attend additional training programs as specified by Bambu, and pay a renewal fee.
Furthermore, the franchisee must sign a new franchise agreement along with a Successor Franchise Rider, which includes a release of claims against Bambu. It is important to note that when acquiring successor franchise rights, Bambu may require the franchisee to sign a contract with terms and conditions that are materially different from the original agreement. This could impact the franchisee's obligations, fees, and operational requirements under the renewed agreement.
Prospective franchisees should carefully review Section 18.3 of the Franchise Agreement and Exhibit E to fully understand the conditions and potential changes in the new agreement upon renewal. It is advisable to seek legal counsel to assess the implications of these changes before committing to a renewal.