What advance written notice of cancellation is required for Bambu franchisee liability insurance policies?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.1 Insurance Coverage. Franchisee shall procure and maintain the types of insurance as set forth in the FRC Materials or other writings provided by Bambu, with the limits prescribed in the FRC Materials or other writings provided by Bambu. 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 and provide Bambu with a 30-day advance written notice of cancellation.
This requirement ensures that Bambu is informed if a franchisee's insurance coverage is at risk of lapsing, allowing Bambu time to ensure continuous coverage either by requiring the franchisee to reinstate the policy or by taking other measures to protect its interests. Bambu also has the right to modify the required insurance types and minimum coverage amounts, provided they give the franchisee 60 days' prior notice.
Furthermore, 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 may pay any premium delinquencies and charge the franchisee.