Does Bambu reserve the right to offer an existing franchisee the first right to purchase an additional franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless you sign a MUD Agreement, described below, and except as described below related to Drive-thru shoppes (defined below) in your Protected Area, you have no option, right of first refusal or similar contractual right to acquire additional Bambū franchises. We reserve the right, in our sole discretion, to offer an existing franchisee the first right to purchase an additional franchise in the market area adjacent to that served by the franchisee's existing Franchised Location. Continuation of your rights to the Protected Area is not dependent on achieving a certain sales volume, market penetration or other contingency.
Source: Item 12 — (FDD pages 38–40)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu retains the right to offer an existing franchisee the first opportunity to purchase an additional franchise. Specifically, Bambu may offer this right to an existing franchisee for a location in the market area adjacent to the franchisee's current Bambu location. This is not an obligation, but a right that Bambu can exercise at its discretion.
This clause benefits existing Bambu franchisees who have proven successful and are looking to expand their operations. It gives them a potential advantage over new applicants when new franchise opportunities arise in nearby areas. However, it's important to note that this right is not guaranteed, and Bambu ultimately decides whether to extend this offer.
It is also important to note that unless a franchisee signs a MUD Agreement, they typically do not have an option, right of first refusal, or similar contractual right to acquire additional Bambu franchises. The exception to this is related to Drive-thru shoppes within their Protected Area. In this case, Bambu will give the franchisee a right of first refusal to participate in the Drive-thru shoppe with either partial or whole ownership thereof.