After the Bambu franchise is terminated or expires, what is the duration and geographic scope of the non-competition covenant?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (r) | Non-competition covenants after the franchise is terminated or expires | Section 21.2 of FA; Section 6.1 of MUDA | No competing business for 2 years within 10 miles of your shoppe or any other Bambū shoppe. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if the franchise is terminated or expires, the franchisee is subject to a non-competition covenant. This means the franchisee cannot engage in a competing business for a specified period and within a certain geographic area.
Specifically, the non-compete lasts for 2 years. During this time, the franchisee is restricted from operating a competing business within 10 miles of their former Bambu location or any other Bambu location.
This restriction is fairly standard in franchising to protect the brand and other franchisees in the system. Prospective franchisees should carefully consider the implications of this non-compete, especially if they plan to remain in the same geographic area after the franchise agreement ends.