What advance written notice of cancellation must Bambu receive from the franchisee's liability insurance provider?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
All of the required policies of liability insurance shall name Bambu, together with any third parties required by Bambu to be named, as additional named insureds and shall provide for a 30-day advance written notice to Bambu of cancellation. Bambu has the right to change the types of insurance Franchisee is required to maintain and the minimum amount of insurance Franchisee is required to maintain by giving Franchisee 60 days' prior notice.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu franchisees must ensure that all required liability insurance policies name Bambu as an additional insured. These policies must also stipulate that Bambu receives a 30-day advance written notice if the insurance is canceled.
This requirement ensures that Bambu is informed well in advance if a franchisee's insurance coverage is terminated. This allows Bambu time to ensure the franchisee reinstates the coverage to avoid any operational disruptions or potential liabilities.
Bambu also retains the right to modify the types and minimum amounts of insurance coverage franchisees must maintain, provided they give franchisees 60 days' prior notice of such changes. Franchisees must provide proof of insurance to Bambu before commencing operations and upon any changes to the required insurance. Renewal certificates must be furnished at least 30 days before the expiration of each policy. Failure to comply with these insurance provisions constitutes a material breach of the franchise agreement, potentially leading to a cessation of operations until coverage is reinstated or Bambu covering premium payments at the franchisee's expense.