Does the Bambu franchise agreement allow for a cure period for any defaults before termination?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
parties, provided that Franchisee will not be entitled to a refund of any fees paid hereunder under any circumstances.
- 4.3. Termination by Bambu. Franchisee shall be deemed in default and this MUD Agreement may be terminated by Bambu, at its option, in the following circumstances:
- (i) Franchisee defaults on any term or condition of this MUD Agreement, including without limitation, the failure to open and maintain the number of shoppes required by the Development Schedule, and fails to cure such default after 30 days written notice to Franchisee; or
- (ii) Franchisee is in default under any of the Franchise Agreements executed in furtherance of this MUD Agreement or any other agreement between Bambu or any of Bambu's
affiliates and Franchisee or any of Franchisee's affiliates and fails to cure such default within the time periods specified in such other agreements.
- 4.4. Continued Effectiveness of Franchise Agreements. If this MUD Agreement is terminated due solely to a failure by Franchisee to meet the Development Schedule, Bambu and Franchisee agree that such termination shall not constitute a default or result in a termination of any Franchise Agreements executed between Franchisee and Bambu in effect as of the date of termination of this MUD Agreement. In that case, those Franchise Agreements shall continue in full force and effect notwithstanding the termination of this MUD Agreement. Bambu and Franchisee agree that any statements to the contrary in the Franchise Agreements executed by them, including any cross-default and cross-termination provisions, will be inapplicable in the situation of a termination of this MUD Agreement based solely on Franchisee's failure to meet the Development Schedule.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu can terminate the franchise agreement if a franchisee defaults. However, in many instances, the franchisee is provided an opportunity to cure the default.
Specifically, if a franchisee defaults on the MUD (Multi-Unit Development) Agreement, including failing to open and maintain the required number of stores per the Development Schedule, Bambu may terminate the MUD agreement if the franchisee fails to cure the default after 30 days written notice. Also, if a franchisee defaults under any Franchise Agreements related to the MUD agreement, or any other agreement with Bambu or its affiliates, and fails to cure the default within the time periods specified in those agreements, Bambu can terminate the MUD agreement.
For defaults under the Franchise Agreement, Bambu can terminate the agreement without providing an opportunity to cure, except where expressly indicated and subject to state laws. However, if a breach is curable but cannot be reasonably cured within 30 days, and the franchisee has started and continues to make good faith efforts to cure the breach, Bambu will allow an additional reasonable period to cure, and the agreement will not automatically terminate without written notice from Bambu.