What is the definition of 'Principals' in the context of criminal convictions that could affect the Bambu franchise agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee, or any of its owners, managing members, or Bambū Certified Team Leaders (collectively "Principals"), is convicted of a felony, a crime involving moral turpitude, or any crime or offense that is reasonably likely, in the sole opinion of Bambu, to materially and unfavorably affect the Bambū system, Marks, goodwill or reputation thereof.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the term 'Principals' is specifically defined within the context of criminal convictions that could lead to the termination of the franchise agreement.
The FDD states that 'Principals' refers collectively to the franchisee, any of its owners, managing members, or Bambu Certified Team Leaders. This definition is important because if any of these individuals are convicted of a felony, a crime involving moral turpitude, or any crime or offense that could materially and unfavorably affect the Bambu system, Marks, goodwill, or reputation, Bambu has the right to terminate the franchise agreement.
This clause highlights the importance Bambu places on maintaining its brand image and reputation. A criminal conviction of anyone in a leadership position or a certified team leader role could reflect poorly on the franchise and potentially damage its standing in the community. Prospective franchisees should ensure that all individuals falling under the definition of 'Principals' maintain a clean criminal record to avoid potential issues with the franchisor.