In Virginia, when does a Bambu franchisee pay the initial franchise fee and other initial payments?

According to Bambu's 2025 Franchise Disclosure Document, a Virginia franchisee is required to defer payment of the initial franchise fee and other initial payments until Bambu has completed its pre-opening obligations under the Franchise Agreement. This requirement is mandated by the Virginia State Corporation Commission's Division of Securities and Retail Franchising. This condition is included as a rider to the standard franchise agreement for franchisees in Virginia.

This deferral of payment is a financial protection for the franchisee. It ensures that Bambu fulfills its obligations to help the franchisee establish their business before the franchisee is required to pay the initial franchise fee. Pre-opening obligations typically include site selection assistance, training, and providing operations manuals.

This condition supersedes any conflicting terms in the standard franchise agreement. It also prevents Bambu from enforcing any statement or acknowledgment signed by the franchisee that would waive claims under Virginia franchise law or disclaim reliance on statements made by Bambu. This provision aims to protect the franchisee's rights and ensure they are not pressured into waiving legal protections.

Prospective franchisees in Virginia should carefully review the Virginia Rider to the Franchise Agreement to fully understand their rights and obligations regarding the payment of initial fees. They should also confirm with Bambu exactly what constitutes the completion of pre-opening obligations to avoid any misunderstandings about when the initial franchise fee becomes due.