factual

Does the Bambu franchise agreement acknowledge that enforcement of the covenants will not deprive franchisees of their ability to earn a living?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

Associate expressly acknowledges that he or she possesses business and career skills and abilities of a general nature and has other opportunities for exploiting such skills and abilities.

Consequently, enforcement of this covenant will not deprive Associate of his or her personal goodwill or ability to earn a living.

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 enforcement of certain covenants, specifically the post-termination covenant not to compete, will not deprive the franchisee's associates of their ability to earn a living. This acknowledgment is based on the understanding that these associates possess general business and career skills that can be applied to other opportunities. This suggests that the restrictions imposed by the non-compete agreement are not intended to be overly burdensome, recognizing the associate's ability to pursue other means of employment or business ventures.

Specifically, the FDD states that associates possess skills and abilities of a general nature and have other opportunities for exploiting such skills. Consequently, the enforcement of the covenants made in Section 21 will not deprive them of their personal goodwill or ability to earn a living. This statement provides some reassurance to potential franchisees and their associates that the non-compete obligations are balanced against the individual's right to pursue their livelihood.

It is important to note that this acknowledgment is tied to the associate's existing skills and opportunities. A prospective franchisee should carefully review the specific terms of the non-compete agreement and consider how it might impact their associates' future employment options. While the agreement recognizes the need to avoid depriving individuals of their livelihood, the actual impact will depend on the specific circumstances and the availability of alternative opportunities.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.