What is the definition of 'moral turpitude' in the context of criminal convictions that could affect a Bambu franchise?

According to Bambu's 2025 Franchise Disclosure Document, the franchise agreement can be terminated if the franchisee, any of its owners, managing members, or Bambu Certified Team Leaders are convicted of a felony, a crime involving moral turpitude, or any crime or offense that is reasonably likely to materially and unfavorably affect the Bambu system, Marks, goodwill, or reputation. The FDD does not provide a specific legal definition of 'moral turpitude.'

In the context of franchise agreements, 'moral turpitude' generally refers to conduct that is considered base, vile, or depraved and violates accepted moral standards. These are crimes that demonstrate a high level of moral corruption. Because the term is subjective, it allows Bambu to make a judgment about the severity and impact of a crime beyond just whether it is a felony.

For a prospective Bambu franchisee, this means that any past or future criminal convictions of themselves or their key personnel could potentially jeopardize their franchise agreement, even if the crime is not a felony. The determination of whether a crime involves moral turpitude rests solely with Bambu, adding a layer of uncertainty. It is important to understand what types of offenses Bambu might consider as 'moral turpitude' and how that determination would be made. A prospective franchisee should seek clarification from Bambu on this matter and possibly consult with legal counsel to assess the potential risks.