What action can Bambu take if a franchisee's insurance coverage lapses?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Noncompliance with the insurance provisions set forth herein shall be deemed a material breach of this Agreement; in the event of any lapse in insurance coverage, in addition to all other remedies, Bambu shall have the right to demand that Franchisee cease operations of the Bambū shoppe until coverage is reinstated, or, in the alternative, pay any delinquencies in premium payments and charge the same back to Franchisee.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, maintaining proper insurance coverage is a material requirement of the franchise agreement. If a franchisee's insurance lapses, Bambu has the right to demand that the franchisee cease operations of the Bambu shoppe until the insurance coverage is reinstated.
Alternatively, Bambu can choose to pay any overdue premium payments to reinstate the insurance coverage. If Bambu makes these payments, they can then charge the amount back to the franchisee.
This clause protects Bambu from liability due to a franchisee operating without insurance and ensures business continuity by allowing Bambu to step in and rectify the situation, with the franchisee ultimately bearing the financial responsibility.