Does the Washington Rider supersede other terms in any document executed by a Bambu franchisee?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- The following statement is added to Section 4.1:
The Securities Administrator of the State of Washington has determined that, based on Bambu's financial condition, Bambu may not be able to fulfill its obligations to Franchisee in the establishment and opening of the Bambū shoppe. Bambu has elected to assure financial capability by deferring the payment of all initial fees owed to Bambu until Bambu has completed its initial obligations under the Franchise Agreement and Franchisee's Bambū shoppe opens.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Washington Rider includes a provision related to the deferral of initial fees. Specifically, the Securities Administrator of the State of Washington determined that Bambu's financial condition might prevent it from fulfilling its obligations to franchisees during the establishment and opening of a Bambu location. To address this, Bambu elected to defer the payment of all initial fees until it has completed its initial obligations under the Franchise Agreement and the franchisee's Bambu store opens. This measure assures financial capability.
This deferral of initial fees is added to Section 4.1 of the franchise agreement. This addition ensures that franchisees in Washington are not required to pay initial fees until Bambu has met its pre-opening obligations and the store is ready to commence operations.
This condition is specific to Washington due to the state's regulatory concerns regarding Bambu's financial stability. Prospective franchisees in Washington should understand that this deferral is designed to protect their investment by ensuring that Bambu fulfills its initial obligations before receiving any initial fees.