How does the Bambu franchise agreement define 'immediate family' for the purposes of restrictive covenants?

According to Bambu's 2025 Franchise Disclosure Document, the term 'immediate family' is specifically defined within the context of the non-compete clauses in the franchise agreement. This definition is important because the restrictive covenants not only apply to the franchisee, but also extend to members of their immediate family. This means that these individuals are also restricted from engaging in competitive business activities during the term of the agreement and for a period after termination or expiration.

Bambu defines 'immediate family' to include any spouse, domestic partner, children, parents, or siblings. This definition is relevant to both the non-competition covenant during the term of the agreement and the post-termination covenant not to compete. Therefore, these family members are also restricted from having a direct or indirect interest in a Competitive Business, which is defined as any business deriving more than 10% of its gross receipts from the preparation or sale of teas, fruit dessert drinks, coffee, or other products offered by Bambu.

This broad definition of 'immediate family' has significant implications for prospective franchisees. It means that the franchisee needs to ensure that these family members also understand and comply with the non-compete obligations. If a family member violates these covenants, it could result in legal action against the franchisee. Franchisees should carefully consider these restrictions and discuss them with their families before entering into a franchise agreement with Bambu.