Within what timeframe must a Bambu franchisee secure financing, select a location, obtain insurance, and commence operations?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
nd fictitious name registrations, sales tax permits, health and sanitation permits and ratings and fire clearances.
5.8 Commencement of Operations. Unless otherwise agreed to in writing by Bambu and Franchisee, Franchisee shall, within one year from the date of this Agreement: (1) secure all necessary financing for the shoppe; (2) select, purchase or lease and build-out the Franchised Location; (3) obtain and provide evidence of insurance as described in Article 22 below; (4) obtain all required licenses and permits; (5) purchase or lease and have installed signs, counters, furniture, equipment and software as meets the standards and specifications of Bambu; (6) purchase an opening inventory of products and supplies; (7) complete the Training Program described in Section 6.1 below; and (8) commence operation of the Bambū shoppe. Franchisee will be deemed to have commenced operations of the Bambū shoppe at the time that the Bambū shoppe is first open to any paying customers. Bambu may, in its sole discretion, extend the time in which Franchisee has to commence operations for a reasonable period of time in the event factors beyond Franchisee's reasonable control prevent Franchisee from meeting this development schedule, so long as Franchisee has made reasonable and continuing efforts to comply with such development obligations and Franchisee requests, in writing, an extension of time in which to have its Bambū shoppe established before the development period lapses. If Franchisee fails to open its shoppe within one year from the date of this Agreement, in Bambu's sole discretion, Franchisee shall be required to pay Bambu the monthly Royalty Fee and Marketing and Technology Fee starting with the thirteenth month from the date of this Agreement, and for purposes of the reconciliation process set forth in Section 12.3.a, Franchisee shall be deemed to have gene
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee has one year from the date of the Franchise Agreement to meet several key milestones. These include securing all necessary financing for the store, selecting, purchasing or leasing, and building out the franchised location. Additionally, the franchisee must obtain and provide evidence of the required insurance, secure all necessary licenses and permits, and purchase or lease and install all required signs, counters, furniture, equipment, and software according to Bambu's standards. The franchisee must also purchase an opening inventory of products and supplies, complete the required training program, and commence operations of the Bambu store.
This one-year timeframe is a critical performance benchmark for new Bambu franchisees. Failure to meet this deadline can have financial repercussions. Specifically, if the franchisee does not open their store within one year, Bambu has the discretion to require the franchisee to start paying the monthly Royalty Fee and Marketing and Technology Fee beginning in the thirteenth month of the agreement. Furthermore, for reconciliation purposes, the franchisee will be deemed to have generated monthly Net Revenues equal to $800 divided by 3.5 percent until the store actually opens.
Bambu does provide some flexibility. The franchisor may extend the commencement deadline if factors beyond the franchisee's control prevent them from meeting the schedule, provided the franchisee has made reasonable and continuing efforts to comply with their obligations and requests a written extension before the initial period expires. This underscores the importance of proactive communication with Bambu if a franchisee anticipates delays.
In summary, while Bambu requires franchisees to meet a demanding one-year timeline for opening their store, they also offer potential extensions for circumstances outside the franchisee's control. Franchisees should maintain open communication with Bambu and diligently pursue all necessary steps to meet the required deadlines.