What is the cure period for a Bambu franchisee's failure to comply with FRC Materials or other standards?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (a) | Length of the franchise term | Section 18.1 of Franchise Agreement ("FA"); Section 4.1 of Multi-Unit Development Agreement ("MUDA") | 10 years for the Franchise Agreement. For the MUD Agreement, the term extends until the earlier of the date that you sign the Franchise Agreement for the final Bambū shoppe to be developed under the MUD Agreement or the deadline in the development schedule for signing that Franchise Agreement. |
| (b) | Renewal or extension of the term | Sections 18.3 and 18.4 of FA | If you meet certain criteria, you may acquire successor franchise rights for the term stated in the then current Franchise Agreement. |
| (c) | Requirements for franchisee to renew or extend | Section 18.3 of FA | Provide notice to us, no more than 3 defaults, remodel shoppe, attend additional training, pay fee, sign new agreement and a Successor Franchise Rider in the form attached as Exhibit E containing a release. If you seek to acquire successor franchise rights, you may be required to sign a contract with materially different terms and conditions than your original contract. |
| (d) | Termination by franchisee | Section 4.2 of MUDA | For the Franchise Agreement: Not applicable. For the MUD Agreement: You may terminate for any reason upon 60 days' notice. (Subject to state law.) |
| (e) | Termination by franchisor without cause | Not applicable | Not applicable |
| (f) | Termination by franchisor with cause | Sections 19.1 and 19.2 of FA; Sections 4.3 and 4.4 of MUDA | We can terminate only if you commit any one of several listed violations. |
| (g) | "Cause" defined-curable defaults | Sections 19.1 and 19.2 of FA; Section 4.3 of MUDA | For the Franchise Agreement: 48 hours for misuse of the Marks, purchases from unapproved suppliers, or other failures to comply with FRC Materials or other standards, 5 days for monetary defaults, 7 days for filing of a legal action in violation of the dispute resolution terms in the Franchise Agreement, and generally 30 days for other defaults. For the Development Agreement: 30 days' notice for breach. If we provide you with a notice of default, we and our affiliates may suspend services to you until each default is cured. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee has 48 hours to cure a failure to comply with FRC Materials or other standards. This short cure period is also applicable to misuse of the Marks and purchases from unapproved suppliers.
This means that if Bambu determines a franchisee is not adhering to the standards outlined in the FRC Materials or other established standards, the franchisee must correct the issue within 48 hours to avoid potential termination of the franchise agreement. This could include issues related to branding, product quality, operational procedures, or any other area covered by Bambu's standards.
The relatively short cure period of 48 hours underscores the importance of strict adherence to Bambu's standards. Franchisees should ensure they are thoroughly familiar with all requirements and have systems in place to maintain compliance. Failure to do so could quickly lead to a notice of default and potential termination if the issue is not resolved within the specified timeframe. This is stricter than the cure periods for monetary defaults (5 days) or general defaults (30 days).
Prospective franchisees should carefully review the Franchise Agreement and FRC Materials to fully understand the scope of these standards and the potential consequences of non-compliance. It would be prudent to discuss specific examples of potential violations and the process for addressing them with the franchisor during the due diligence phase.