How are riders to the Franchise Agreement for Specific States or Provinces treated in the Bambu franchise agreement?

According to Bambu's 2025 Franchise Disclosure Document, riders to the franchise agreement for specific states or provinces are incorporated into the franchise agreement if they are marked as "Applicable Rider". If there are conflicting terms between the rider and the franchise agreement, the terms of the rider will take precedence. Attachment IV to the franchise agreement specifically addresses these riders.

Several states have specific riders that modify the standard Bambu franchise agreement. For example, the Illinois Rider to the Franchise Agreement includes provisions related to Illinois law governing the agreement, venue stipulations, franchisee rights upon termination and non-renewal as defined in the Illinois Franchise Disclosure Act, and the deferral of initial fees until Bambu fulfills its initial obligations due to its financial condition. Similarly, the Indiana Rider includes language prohibiting Bambu from establishing a company-owned outlet within the franchisee's protected area.

Other states like Virginia and Washington also have riders that address the deferral of initial franchise fees based on Bambu's financial condition, ensuring that franchisees are not required to pay these fees until Bambu has met its pre-opening obligations. These riders often include statements required by state regulatory bodies as a condition of registration. Additionally, certain provisions, such as those relating to choice of law or dispute resolution, may be modified or deemed unenforceable in specific states due to local franchise laws. These riders are crucial for franchisees to understand their rights and obligations within the context of their specific state or province.