What constitutes abandonment of the Bambu shoppe that would allow Bambu to terminate the agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
19.1 Termination by Bambu Effective Upon Notice.
Bambu shall have the right, at its option, to terminate this Agreement and all rights granted Franchisee hereunder, without affording Franchisee any opportunity to cure any default (except where expressly indicated and subject to any state laws to the contrary, where state law shall prevail), effective upon notice to Franchisee upon the occurrence of any of the following events:
- a.
Abandonment.
If Franchisee ceases to operate the Bambū shoppe or otherwise abandons the Bambū shoppe for a period of three consecutive days, or any shorter period that indicates an intent by Franchisee to discontinue operation of the Bambū shoppe.
Franchisee's suspension or termination of the shoppe's operation due to fire, flood, earthquake, epidemic or pandemic, or force majeure shall not be deemed abandonment.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu can terminate the franchise agreement if the franchisee abandons the shoppe. Abandonment occurs if the franchisee ceases to operate the Bambu shoppe for three consecutive days.
However, the FDD specifies an exception to this rule. If the suspension or termination of the shoppe's operation is due to events such as fire, flood, earthquake, epidemic, pandemic, or force majeure, it will not be deemed abandonment. This provides some protection for franchisees in situations beyond their control.
This clause is important for prospective franchisees to understand, as it highlights the importance of maintaining continuous operation of the Bambu shoppe, barring specific, unavoidable circumstances. Failure to do so could result in the termination of the franchise agreement.