Under what conditions can Bambu decide not to exercise its option to purchase the Bambu shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee agrees that it shall be obligated to operate the Bambū shoppe, according to the terms of this Agreement, during the period in which Bambu is deciding whether to exercise its option to purchase and until the closing takes place, and that a condition to closing is that the Bambū shoppe has remained open during that time period.
Bambu may decide not to exercise its option to purchase at any time before closing if it determines that any of the conditions noted above have not been or cannot be satisfied.
In the event that Bambu does not exercise its right to purchase Franchisee's Bambū shoppe as set forth above, Franchisee will be free to keep or to sell, after such termination or expiration, to any third party, all of the physical assets of the Bambū shoppe; provided, however, that all Marks and Bambu's color scheme and trade dress are first removed in a manner approved in writing by Bambu.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu may choose not to exercise its option to purchase the Bambu shoppe at any point before the closing if it determines that any of the conditions for the purchase have not been met or cannot be satisfied.
This means that a franchisee must maintain operations of the Bambu shoppe according to the franchise agreement during the period in which Bambu is deciding whether to exercise its purchase option. A condition to closing is that the Bambu shoppe remains open during that time.
If Bambu decides not to purchase the Bambu shoppe, the franchisee is then free to either keep or sell the physical assets of the shoppe to a third party after the termination or expiration of the franchise agreement. However, the franchisee must first remove all Bambu trademarks, color schemes, and trade dress in a manner approved in writing by Bambu.