Does the Bambu franchise agreement acknowledge that enforcement of the covenants will not deprive franchisees of their personal goodwill?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
members, managers and/or partners acknowledge that they possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, enforcement of the covenants made in this Section will not deprive them of their personal goodwill or ability to earn a living. If the restrictions concerning the time duration, geography, affected individuals or entities, or breadth of activity contained in Sections 21.1 and 21.2 are held to be unenforceable under any applicable law, the arbiter of any dispute regarding this Agreement is hereby authorized to and shall make only such limited changes as are necessary to make the restrictions enforceable.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchise agreement acknowledges that the individuals signing the agreement possess general skills and abilities and have other opportunities to use these skills. Therefore, the enforcement of the covenants within the agreement will not deprive them of their personal goodwill or their ability to earn a living. This acknowledgment is included to ensure that the restrictions imposed on the franchisee are not overly burdensome.
This clause is particularly relevant when considering the non-compete agreements that Bambu may enforce. By acknowledging that the franchisee has other means of earning a living, Bambu aims to ensure that the non-compete provisions are viewed as reasonable and enforceable, should they ever be legally challenged. This protects both Bambu's interests in maintaining its brand integrity and the franchisee's right to pursue their livelihood after the franchise agreement ends.
Additionally, the agreement specifies that if any of the restrictions related to time, geography, or scope are deemed unenforceable, the arbiter is authorized to make limited changes necessary to ensure the restrictions are enforceable. This demonstrates Bambu's intent to maintain reasonable and legally sound restrictions while also protecting the franchisee's ability to utilize their skills and maintain their personal goodwill.