factual

Under what condition might a Bambu franchisee have the first right to purchase an additional franchise?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

he closure period, although we will waive the Marketing and Technology Fee until your relocated Bambū shoppe has opened. 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.

You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own, or from other channels of distribution or competitive brands that we control.

Source: Item 12 — (FDD pages 38–40)

What This Means (2025 FDD)

According to Bambu's 2025 Franchise Disclosure Document, under normal circumstances, a franchisee does not have a right of first refusal to acquire additional Bambu franchises. However, Bambu reserves the right to offer an existing franchisee the first right to purchase an additional franchise in the market area adjacent to the franchisee's existing franchised location. This is at Bambu's sole discretion.

Additionally, if Bambu desires to open or permit someone else to open a drive-thru shoppe in a franchisee's Protected Area or Development Area, Bambu will give the franchisee a right of first refusal to participate in the drive-thru shoppe with either partial or whole ownership.

These conditions provide potential opportunities for existing Bambu franchisees to expand their business within or adjacent to their current territories, but these opportunities are not guaranteed and are subject to Bambu's approval and specific circumstances.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.