What is the consequence if a Bambu franchisee does not comply with the terms and conditions imposed by Bambu or its suppliers?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
arty supplier, or otherwise in default under this Agreement. 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.
- c. No Product Warranties. The products purchased by Franchisee from Bambu or its affiliated companies shall be subject only to manufacturers' warranties. BAMBU AND ITS AFFILIATED COMPANIES MAKE NO WARRANTIES, EXPRESS OR IMPLIED, REGARDING MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OF ANY OF THE PRODUCTS PURCHASED BY FRANCHISEE.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 FDD, if a Bambu franchisee fails to comply with the terms and conditions set by Bambu, its affiliates, or any third-party supplier for purchasing products or items, Bambu or its affiliates have the right to take several actions. They may stop selling or allowing the franchisee to purchase products through Bambu's account, place the franchisee's account on hold, and halt the delivery of products already ordered but not yet paid for.
Furthermore, Bambu and its affiliates are entitled to charge interest and late fees, as detailed in Section 12.5 of the agreement. They can also recover reasonable attorneys' fees from the franchisee if legal action, arbitration, or other proceedings are necessary to collect amounts owed for purchases made from or through Bambu or its affiliates.
Additionally, the FDD states that a default by the franchisee regarding amounts owed to third parties may be considered a default under the franchise agreement, allowing Bambu to use all available remedies. The franchisee must also comply with all agreements with third parties related to the Bambu shop, including the provisions of any premises lease or equipment lease.