Can a Bambu franchise agreement be terminated by written agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
usal to offer successor franchise rights. Upon the expiration of this Agreement, Franchisee shall comply with the provisions of Section 19.4 below.
19. DEFAULT AND TERMINATION
- 19.1 Termination by Bambu Effective Upon Notice. Bambu shall have the right, at its option, to terminate this Agreement and all rights granted Franchisee hereunder, without affording Franchisee any opportunity to cure any default (except where expressly indicated and subject to any state laws to the contrary, where state law shall prevail), effective upon notice to Franchisee upon the occurrence of any of the following events:
- a. Abandonment. If Franchisee ceases to operate the Bambū shoppe or otherwise abandons the Bambū shoppe for a period of three consecutive days, or any shorter period that indicates an intent by Franchisee to discontinue operation of the Bambū shoppe. Franchisee's suspension or termination of the shoppe's operation due to fire, flood, earthquake, epidemic or pandemic, or force majeure shall not be deemed abandonment.
- b. No Bambū Certified Team Leaders Present. No Bambū Certified Team Leaders are present at, or are available upon Bambu's demand to be present at, the Bambū shoppe for three consecutive days.
- c. Insolvency; Assignments. If Franchisee becomes insolvent or is adjudicated a bankrupt; or if any action is taken by Franchisee, or by others against Franchisee under any insolvency, bankruptcy or reorganization act, (this provision may not be enforceable under federal bankruptcy law, 11 U.S.C. §§ 101 et seq.); or if Franchisee makes an assignment for the benefit of creditors or a receiver is appointed by Franchisee.
- d. Unsatisfied Judgments; Levy; Foreclosure.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchise agreement can be terminated under certain conditions. Section 19.1 outlines specific events that allow Bambu to terminate the agreement immediately upon notice to the franchisee, without providing an opportunity to cure the default, unless state law dictates otherwise. These events include abandonment of the shoppe for three consecutive days (or a shorter period indicating intent to discontinue operation), the absence of Bambu Certified Team Leaders at the shoppe for three consecutive days, and insolvency or assignments.
Additionally, Section 18.1 states that the franchise agreement has an initial term of 10 years but can be terminated sooner as provided within the agreement. Section 18.2 describes continuation of operations beyond the term of the agreement, resulting in a month-to-month basis that can be terminated with 30 days' written notice.
While the FDD details conditions under which Bambu can terminate the agreement, it does not explicitly state that the franchise agreement can be terminated by written agreement between both parties. A prospective franchisee should seek clarification from Bambu regarding the possibility of termination by mutual written agreement and under what specific circumstances such termination would be permissible.