What was the case number for the administrative proceeding before the Securities Commissioner of Maryland involving Bambu's predecessor?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
of these amounts.
- Administrative Proceeding Before the Securities Commissioner of Maryland In the Matter of: Bambu Desserts and Drinks, Inc., Case no. 2015-0307. In 2015, the Securities Division of the Office of the Attorney General of Maryland ("Division") opened an investigation into the sale of an option by BDDI, our predecessor, to the same Virginia licensee described in paragraph 1 above for a location that may have been in Maryland. Without admitting or denying the Division's allegations, the predecessor signed a Consent Order with the Division effective August 15, 2016. Under the Consent Order, we paid on behalf of the predecessor $5,000 in restitution to the Virginia licensee. The $5,000 was included in the amount paid under the Virginia Settlement Order described in paragraph 1 above. Our predecessors ha
Source: Item 3 — Litigation (FDD pages 12–13)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the case number for the administrative proceeding before the Securities Commissioner of Maryland involving Bambu Desserts and Drinks, Inc., a predecessor of Bambu, was Case no. 2015-0307. This proceeding was initiated in 2015 by the Securities Division of the Office of the Attorney General of Maryland. The investigation focused on the sale of an option by Bambu's predecessor to a Virginia licensee for a location potentially in Maryland.
Bambu's predecessor signed a Consent Order with the Division effective August 15, 2016, without admitting or denying the allegations. As part of the Consent Order, Bambu paid $5,000 on behalf of its predecessor to the Virginia licensee. This amount was included in the payment made under the Virginia Settlement Order, and Bambu's predecessors reimbursed the company for one-half of these amounts.
This information is important for prospective franchisees as it provides transparency regarding past legal issues involving Bambu's predecessors. Understanding the nature and resolution of these proceedings can help franchisees assess potential risks and liabilities associated with the franchise. It is also worth noting that the case was resolved with a consent order, and the financial impact on Bambu was partially reimbursed by its predecessors.