How can a Bambu franchise agreement be terminated by written agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, the franchise agreement does not explicitly detail a procedure for termination by mutual written agreement. However, the document does state conditions under which Bambu can terminate the agreement, such as abandonment of the shoppe, absence of certified team leaders, or breach of other agreements, effective upon notice to the franchisee.
Additionally, the Bambu franchise agreement outlines circumstances where the franchisee may have the option to terminate the agreement, such as if Bambu is in default of its obligations and fails to remedy the default within a specified timeframe. The agreement also details the franchisee's obligations upon termination or expiration, including payment of outstanding fees and ceasing to use Bambu's trademarks and trade secrets.
While the FDD does not specifically address termination by mutual written consent, it is common practice in franchising for parties to negotiate a termination agreement if both sides concur. A prospective franchisee should discuss with Bambu the possibility and process for such a termination to understand their options fully. This discussion should clarify whether mutual termination is permissible and what conditions or costs might be associated with it.