In Virginia, what entity requires Bambu to defer payment of the Development Fee until pre-opening obligations are met?

According to Bambu's 2025 Franchise Disclosure Document, the Virginia State Corporation Commission's Division of Securities and Retail Franchising mandates that Bambu defer payment of the Development Fee. This deferral is required until Bambu has fulfilled its pre-opening obligations under the Franchise Agreement for the franchisee's first Bambū shoppe, as referenced in Section 1.3 of the Virginia Rider to MUD Agreement.

This requirement means that a prospective Bambu franchisee in Virginia will not have to pay the Development Fee upfront. Instead, the payment is delayed until Bambu has completed all of its responsibilities related to setting up the franchisee's first location. These pre-opening obligations typically include site selection assistance, training, providing operations manuals, and other forms of support necessary to get the franchise location ready for business.

The deferral of the Development Fee provides a financial benefit to the franchisee, reducing the initial investment required to start the franchise. It also offers some assurance that Bambu is committed to providing the necessary support to get the franchise operational before receiving the fee. This condition is specific to Virginia due to the state's franchise laws and regulatory oversight.

It is important for prospective franchisees in Virginia to understand this deferral and ensure that the Franchise Agreement and any related documents accurately reflect this condition. They should also confirm with Bambu exactly what constitutes the 'pre-opening obligations' that must be met before the Development Fee becomes due.