What is the cure period for monetary defaults by a Bambu franchisee?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (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 five days to cure monetary defaults. Specifically, if a franchisee fails to make required payments to Bambu, they have a limited time to correct the issue before Bambu can terminate the franchise agreement.
This short cure period highlights the importance of maintaining strong financial management and ensuring timely payments. Franchisees should implement robust accounting practices and closely monitor their cash flow to avoid monetary defaults. Missing the five-day deadline could lead to serious consequences, including the loss of the franchise.
It is important to note that this cure period applies specifically to monetary defaults. Other types of defaults, as outlined in the FDD, may have different cure periods or may not be curable at all. Therefore, prospective franchisees should carefully review the entire Item 17 of the Bambu FDD and the franchise agreement to fully understand their obligations and the potential consequences of any default.