Besides suspending services, what other remedies does Bambu have when a Bambu franchisee is in default?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- h.
If applicable, take such action as may be required to remove from the Internet all sites and social media accounts referring to Franchisee's former Bambū shoppe or any of the Marks and to cancel or assign to Bambu, in Bambu's sole discretion, all rights to any domain names for any sites on the Internet and social media accounts that refer to Franchisee's former Bambū shoppe or any of the Marks.
- i.
Abide by all restrictive covenants set forth in Article 21 of this Agreement and, if exercised by Bambu, Bambu's option to purchase described in Section 19.3 of this Agreement.
24.16 Cross-Default and Cross Termination Provisions.
a. A default by Franchisee under this Agreement will be deemed a default of all agreements between Franchisee and/or any company(ies) affiliated with Franchisee, on the one hand, and Bambu and/or any company(ies) affiliated with Bambu, on the other hand (the "Other Agreements"). A default by Franchisee and/or any company(ies) affiliated with Franchisee under any of the Other Agreements will be deemed a default under this Agreement. A default by any guarantor(s) of this Agreement or of any of the Other Agreements will be deemed a default of this Agreement.
b. If this Agreement is terminated as a result of a default by Franchisee, Bambu may, at its option, elect to terminate any or all of the Other Agreements. If any of the Other Agreements is terminated as a result of a default by Franchisee and/or any company(ies) affiliated with Franchisee, Bambu may, at its option, elect to terminate this Agreement. It is agreed that an incurable or uncured default under this Agreement or any of the Other Agreements will be grounds for termination of this Agreement and/or any and all of the Other Agreements without additional notice or opportunity to cure. Bambu may require payments to be made at time of order or in cash on delivery ("COD").
If Franchisee is in arrears on any payment to Bambu, its affiliates or a third party supplier, is in default under this Agreement or is otherwise not in compliance with the terms and conditions imposed by Bambu, its affiliates or any third party supplier for the purchase of any products or items, Bambu or its affiliates may discontinue selling or permitting the purchase through the account of Bambu or its affiliates of any products or other items to Franchisee and may place the account of Franchisee on hold and cease (directly or through third party suppliers) the delivery of products already ordered and not yet paid for.
Bambu and its affiliates shall also be entitled to interest, late fees (in accordance with Section 12.5 below) and to recover their reasonable attorneys' fees from Franchisee in connection with any legal action, arbitration or other proceeding brought by them to collect amounts owed by Franchisee for purchases of products and other items from or through Bambu or its affiliates.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, besides suspending services, Bambu has several other remedies when a franchisee is in default. Bambu can take action to remove the franchisee's former Bambu shop from the internet and social media, including canceling or assigning domain names to Bambu. Bambu can also enforce restrictive covenants outlined in Article 21 of the agreement and exercise its option to purchase the franchise as described in Section 19.3.
Additionally, a default by a franchisee under the franchise agreement is considered a default across all agreements between the franchisee (and its affiliates) and Bambu (and its affiliates). This cross-default provision means that Bambu can terminate any or all other agreements if the franchisee defaults on one. The FDD states that an incurable or uncured default is grounds for termination without additional notice or opportunity to cure.
Bambu may also require the franchisee to make payments at the time of order or in cash upon delivery (COD). If the franchisee is behind on any payments to Bambu, its affiliates, or a third-party supplier, Bambu can discontinue selling or permitting purchases and may put the franchisee's account on hold, ceasing delivery of products already ordered but not yet paid for. Bambu is entitled to interest, late fees, and reasonable attorney's fees in connection with any legal action to collect amounts owed by the franchisee.