What was the effective date of the Settlement Order between Bambu's predecessors and the Commonwealth of Virginia?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Proceedings Against Only Our Predecessors
- Commonwealth of Virginia, ex rel., State Corporation Commission v. Bambu IP, LLC, Bambu Desserts & Drinks, Inc. and Kimhong Thi Nguyen (also known as Kelly Nguyen), Case no. SEC-2015-00028. In 2015, the Virginia State Corporation Commission opened an investigation into a complaint against our predecessors BIP and BDDI, and a principal of the predecessors, made by a licensee in Virginia who purchased a license from the predecessors in 2013. Without admitting or denying the Commission's allegations, the predecessors signed a Settlement Order with the Commission effective August 11, 2016, concluding the Commission's investigation into whether a violation of Section 13.1-560 and Section 13.1-563(4) of the Virginia Retail Franchising Act had occurred. Under the Settlement Order, we paid on behalf of the predecessors $80,000 in restitution to the Virginia licensee and $4,500 to the Commission for penalties and investigation costs. A Final Order was entered on October 25, 2016, dismissing the case. Our predecessors ha
Source: Item 3 — Litigation (FDD pages 12–13)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a Settlement Order was signed with the Commonwealth of Virginia, effective August 11, 2016. This order concluded an investigation by the Virginia State Corporation Commission into Bambu's predecessors, specifically Bambu IP, LLC, Bambu Desserts & Drinks, Inc., and Kimhong Thi Nguyen, regarding a complaint from a Virginia licensee. The complaint originated in 2013.
Under the Settlement Order, Bambu paid $80,000 in restitution to the Virginia licensee and $4,500 to the Commission for penalties and investigation costs on behalf of its predecessors. A Final Order dismissing the case was entered on October 25, 2016. Bambu's predecessors reimbursed the company for one-half of these amounts.
Prospective franchisees should note that this settlement involved Bambu's predecessors and not the current franchise entity. However, it is important to understand the history and legal background of the franchise system. The fact that Bambu covered these costs and was partially reimbursed suggests a level of responsibility and financial arrangement between the current entity and its predecessors.