In Virginia, what pre-opening obligations must Bambu complete before receiving the initial franchise fee?

According to Bambu's 2025 Franchise Disclosure Document, the Virginia State Corporation Commission's Division of Securities and Retail Franchising mandates that Bambu must complete its pre-opening obligations before receiving the initial franchise fee from franchisees in Virginia. This requirement is explicitly stated in the Virginia Rider to the Franchise Agreement.

This means that a prospective Bambu franchisee in Virginia will not be required to pay the initial franchise fee until Bambu has fulfilled all of its obligations outlined in the franchise agreement related to the pre-opening phase. These obligations typically include site selection assistance, providing training, supplying operational manuals, and offering support in setting up the store.

This deferral of the initial franchise fee protects the franchisee by ensuring that Bambu is committed to providing the necessary support and resources to get the franchise operational before receiving payment. It also aligns the franchisor's interests with the franchisee's success during the critical initial phase of the business. Franchisees should carefully review the franchise agreement to understand the full scope of Bambu's pre-opening obligations.