When must a Bambu franchisee provide certificates or proof of insurance to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 22.2 Proof of Insurance Coverage. Franchisee will provide certificates or other acceptable proof of insurance to Bambu prior to commencement of operations at its Bambū shoppe or upon any changes in the required insurance required by Bambu. New certificates evidencing renewal of insurance shall be furnished at least 30 days prior to the date of expiration of each policy. These certificates or such other proof provided must show that the insurer has been authorized to inform Bambu in the event any policies lapse or are cancelled. Additionally, within five business days of any request by Bambu, Franchisee shall deliver a copy of all insurance policies to Bambu for examination. Noncompliance with the insurance provisions set forth herein shall be deemed a material breach of this Agreement; in the event of any lapse in insurance coverage, in addition to all other remedies, Bambu shall have the right to demand that Franchisee cease operations of the Bambū shoppe until coverage is reinstated, or, in the alternative, pay any delinquencies in premium payments and charge the same back to Franchisee.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee must provide certificates or other acceptable proof of insurance to Bambu in the following instances: prior to commencement of operations at their Bambū shoppe, and upon any changes in the required insurance required by Bambu.
Additionally, franchisees must furnish new certificates evidencing renewal of insurance at least 30 days prior to the date of expiration of each policy. These certificates must also show that the insurer has been authorized to inform Bambu if any policies lapse or are cancelled.
Furthermore, within five business days of any request by Bambu, the franchisee is required to deliver a copy of all insurance policies to Bambu for examination. Failure to comply with these insurance provisions constitutes a material breach of the Franchise Agreement, potentially leading to a cessation of operations until coverage is reinstated or Bambu covering premium payments at the franchisee's expense.