According to the Bambu FDD, what is the relationship between the Franchisee and Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
, partners, officers, directors, agents or representatives, which covenants by this reference are incorporated herein.
7. BUSINESS RELATIONSHIPS
- 7.1. Independent Contractor. During the term of this MUD Agreement, Franchisee shall be an independent contractor and shall in no way be considered as an agent, partner or employee of Bambu. It is understood and agreed that no agency or partnership is created by this MUD Agreement. As such, Franchisee has no authority of any nature whatsoever to bind Bambu or incur any liability for or on behalf of Bambu or to represent itself as anything other than an independent contractor.
- 7.2. Indemnification. Franchisee shall indemnify and hold harmless Bambu and its officers, directors, members, managers, agents and representatives ("Indemnified Parties") from all fines, suits, proceedings, claims, demands or actions of any kind or nature, including reasonable attorneys' fees, from anyone whomsoever, directly or indirectly, arising or growing out of, or otherwise connected with Franchisee's activities, actions or failure to act, under this MUD Agreement or Franchisee's operation of its shoppes developed under this MUD Agreement. For purposes of this indemnification, claims shall mean and include all obligations, actual and consequential damages and costs reasonably incurred in the defense of any claim against the Indemnified Parties, including, without limitation, reasonable accountants', attorneys' and expert witness fees, costs of investigation and proof of facts, court costs, other arbitration or litigation expenses and travel and living expenses. Bambu shall have the right to defend any such claim against it. This indemnity shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this MUD Agreement.
8. MISCELLANEOUS
- 8.1. Disputes/Governing Law. The parties agree that any dispute between the parties arising out of the terms of this MUD Agreement shall be governed by the applicable provisions of the Franchise Agreement executed concurrently herewith including the arbitration, choice of law, and venue provisions, which terms and conditions are by this reference incorporated herein. This MUD Agreement shall be governed by and construed in accordance with the laws of the State of Colorado.
- 8.2. Binding Effect.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchisee operates as an independent contractor. The agreement specifies that the franchisee is not considered an agent, partner, or employee of Bambu. This distinction means the franchisee has no authority to legally bind Bambu or incur liabilities on its behalf. The franchisee must present themselves solely as an independent contractor.
This independent contractor status has several implications. The franchisee is responsible for their own business operations, including managing employees and ensuring compliance with local laws. Bambu has no responsibility for supervising the franchisee's operations or ensuring legal compliance. The franchisee is also responsible for filing their own tax, regulatory, and payroll reports.
Furthermore, the franchisee is required to indemnify and hold harmless Bambu from any claims, suits, or actions arising from the franchisee's activities or failure to act. This indemnification covers all costs and damages, including attorney's fees, related to defending against any claims. This clause remains in effect even after the termination or expiration of the agreement, highlighting the ongoing responsibility of the franchisee for their past actions. The franchisee must also post a notice in the store identifying it as independently owned and operated.