Under what conditions is Bambu not obligated to offer a successor franchise?

According to Bambu's 2025 Franchise Disclosure Document, Bambu is not obligated to offer a successor franchise if the franchisee fails to comply with the conditions for acquiring successor franchise rights. Except for failing to execute the then-current Franchise Agreement or pay the Successor Franchise Fee, Bambu must provide the franchisee with a notice of expiration at least 180 days before the term expires. This notice must include the reasons for refusing to offer successor franchise rights. Upon the agreement's expiration, the franchisee must adhere to the provisions outlined in Section 19.4 of the agreement.

To acquire successor franchise rights, a franchisee must meet several conditions. They must execute the form of Franchise Agreement then in use by Bambu at least 30 days before the expiration of the term. The franchisee must also have complied with all provisions of the existing agreement, including timely payments of all fees and inventory purchases. Compliance means that the franchisee has not received more than three written notifications of breach from Bambu during the term.

Additional conditions include upgrading or remodeling the Bambu shop at the franchisee's expense to meet current standards, attending and successfully completing any additional training imposed by Bambu, and executing a successor franchise rider that includes a general release of claims against Bambu. The franchisee must also pay a successor franchise fee concurrently with the execution of the successor franchise agreement. The franchisee can exercise their option for a successor franchise by providing written notice to Bambu between 180 and 270 days before the agreement's scheduled expiration.