Under what conditions can a Bambu franchisee acquire successor franchise rights?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (b) | Renewal or extension of the term | Sections 18.3 and 18.4 of FA | If you meet certain criteria, you may acquire successor franchise rights for the term stated in the then current Franchise Agreement. |
| (c) | Requirements for franchisee to renew or extend | Section 18.3 of FA | Provide notice to us, no more than 3 defaults, remodel shoppe, attend additional training, pay fee, sign new agreement and a Successor Franchise Rider in the form attached as Exhibit E containing a release. If you seek to acquire successor franchise rights, you may be required to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee may be able to acquire successor franchise rights if they meet certain criteria. To renew the franchise agreement, the franchisee must provide notice to Bambu, have no more than 3 defaults, remodel the shoppe, attend additional training, pay a fee, and sign a new agreement along with a Successor Franchise Rider. This rider is included as Exhibit E in the FDD and contains a release of claims against Bambu.
It is important to note that when seeking successor franchise rights, Bambu may require the franchisee to sign a contract with terms and conditions that are materially different from the original franchise agreement. This means that the financial obligations, operational requirements, and other key aspects of the franchise could change upon renewal.
Prospective franchisees should carefully review Section 18.3 of the Franchise Agreement and Exhibit E to fully understand the requirements and potential changes involved in acquiring successor franchise rights. It is also advisable to consult with an attorney to assess the implications of signing a new agreement with potentially different terms.