When must the Successor Franchise Fee be paid to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- f.
Pays a successor franchise fee ("Successor Franchise Fee") to Bambu concurrently with the execution of the successor franchise agreement in the amount set forth in Attachment I.
- 18.4 Exercise of Option for Successor Franchise.
Franchisee may exercise its option for a successor franchise by giving written notice of such exercise to Bambu not more than 270 nor less than 180 days prior to the scheduled expiration of this Agreement.
Franchisee's successor franchise rights shall become effective by signing the Franchise Agreement then currently being offered to new franchisees of Bambu.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee must pay the Successor Franchise Fee to Bambu concurrently with the execution of the successor franchise agreement. This fee is required if the franchisee wants to continue operating their Bambu shop after the initial franchise term expires and is exercising their option for a successor franchise.
To be eligible for a successor franchise, the franchisee must meet several conditions, including compliance with the existing agreement, timely payment of all fees, upgrading or remodeling the shop to meet current standards, completing additional training, and executing a successor franchise rider with a general release of claims against Bambu. Failing to meet these conditions, including the timely payment of the Successor Franchise Fee, can result in Bambu refusing to offer a successor franchise.
Franchisees must provide written notice to Bambu of their intent to exercise the option for a successor franchise not more than 270 nor less than 180 days prior to the scheduled expiration of the current agreement. The successor franchise rights become effective upon signing the new Franchise Agreement then currently being offered to new Bambu franchisees. Therefore, the Successor Franchise Fee is a critical component of securing the rights to continue operating a Bambu franchise beyond the initial term.