What is the standard term length for a Bambu Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 18.1 Term.
The term of this Agreement is for a period of 10 years from the date of this Agreement, unless sooner terminated as provided herein.
Franchisee agrees to operate the Bambū shoppe for the entire term of this Agreement.
- 18.2 Continuation.
If for any reason, Franchisee continues to operate the shoppe beyond the term of this Agreement or any subsequent successor franchise period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' written notice or as required by law.
If said holdover period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period.
Upon termination after any hold-over period, Franchisee and those in active concert with Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 19.3, 19.4, 21.2 and 21.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
- 18.3 Rights Upon Expiration.
At the end of the initial term hereof Franchisee may acquire successor franchise rights for an additional term (provided Bambu does not refuse to offer a successor franchise in accordance with Section 18.5 below), if Franchisee complies with all of the following:
- a.
At least 30 days prior to expiration of the term, executes the form of Franchise Agreement then in use by Bambu (for the same type of franchise as granted by this Agreement or an equivalent type then offered as determined by Bambu), which may have terms substantially different than those set forth in this Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the standard term length for a Franchise Agreement is 10 years. The agreement begins on the date of signing, unless it is terminated earlier as specified in the agreement. Bambu requires the franchisee to operate the shoppe for the entire 10-year term.
If a franchisee continues to operate the Bambu shoppe beyond the initial 10-year term, the agreement transitions to a month-to-month basis. This holdover period is subject to termination with a 30-day written notice, or as required by law. Should this holdover period exceed 90 days, the Franchise Agreement is subject to immediate termination, unless a longer period is mandated by applicable law.
At the end of the initial 10-year term, a franchisee has the option to acquire successor franchise rights for an additional term. To do so, the franchisee must meet certain conditions, including executing the current form of the Franchise Agreement at least 30 days prior to the expiration of the initial term. This new agreement may contain terms substantially different from the original agreement. The franchisee must also comply with all provisions of the existing agreement, upgrade or remodel the shoppe, complete any additional training, execute a successor franchise rider with a general release of claims, and pay a successor franchise fee.