Can the terms of a subsequent franchise agreement for a Bambu franchise be different than the original?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
You may operate your shoppe and use the Marks and the Bambū system only at the Franchised Location which has been approved by us. You may not operate another Bambū shoppe at any site other than the Franchised Location without first obtaining our written consent, which will require you acquiring another franchise and entering into another franchise agreement, the terms of which may be materially different than the terms set forth in the Franchise Agreement attached to this Disclosure Document.
Source: Item 12 — (FDD pages 38–40)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the terms of a subsequent franchise agreement may differ significantly from the original. Specifically, Item 12 states that to operate another Bambu location, a franchisee must acquire another franchise and enter into another franchise agreement, and the terms of that agreement "may be materially different" than the original. This indicates that Bambu retains the flexibility to modify the franchise agreement terms for new locations.
This has important implications for prospective franchisees. It means that the terms of the initial franchise agreement are not guaranteed to remain the same if the franchisee wishes to expand and open additional Bambu locations. Changes could include royalty fees, marketing contributions, operational requirements, or other factors that could impact the profitability and operational aspects of the new franchise.
Franchisees should carefully review the terms of any new franchise agreement offered by Bambu and compare them to the original agreement to understand any changes. It is essential to consider how these changes might affect the financial performance and overall business operations of the additional location. Franchisees should seek legal and financial advice to fully evaluate the implications of any differences in the franchise agreement terms before committing to a new franchise. This is a fairly common practice in franchising, as franchisors often update their agreements to reflect changes in the market, legal requirements, or the franchisor's business model.