What is the definition of 'permanent disability' according to the Bambu Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
For the purposes hereof, the term "permanent disability" shall mean a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent Franchisee or the owner of a controlling interest in Franchisee entity from supervising the management and operation of the Bambū shoppe for a period of 120 days from the onset of such disability, impairment or condition.
In any event, there shall at all times be a Bambū Certified Team Leader designated to be responsible for the management of the shoppe on a full-time basis who has complied with all of Bambu's training requirements, regardless of any death or disability covered in this Section.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Franchise Agreement defines "permanent disability" in the context of the franchisee's ability to manage and operate the Bambu shop. Specifically, it refers to a mental or physical condition that is reasonably expected to prevent, or actually does prevent, the franchisee (or the owner of a controlling interest in the franchisee entity) from effectively supervising the Bambu shop's management and operation.
This condition must persist for a period of 120 days from its onset to be considered a "permanent disability" under the agreement. This definition is important because it triggers certain obligations, such as the requirement for the executor or representative of the disabled franchisee to transfer the franchisee's interest in the agreement to a third party approved by Bambu within 180 days.
Regardless of any death or disability, the franchise agreement stipulates that there must always be a Bambu Certified Team Leader responsible for the shop's management on a full-time basis, ensuring compliance with Bambu's training requirements. This requirement aims to maintain operational standards and continuity even if the franchisee is unable to manage the business directly. Failure to transfer the interest within the specified timeframe constitutes a breach of the agreement.