Can a Bambu franchisee terminate the Franchise Agreement, and if so, under what conditions?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (d) | Termination by franchisee | Section 4.2 of MUDA | For the Franchise Agreement: Not applicable. For the MUD Agreement: You may terminate for any reason upon 60 days' notice. (Subject to state law.) |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee cannot terminate the Franchise Agreement, but can terminate the Multi-Unit Development Agreement under certain conditions.
Specifically, the FDD states that the termination by franchisee is "Not applicable" for the Franchise Agreement. However, for the Multi-Unit Development Agreement, a franchisee may terminate for any reason upon 60 days' notice, subject to state law. This means that while a franchisee is bound to the full term of the Franchise Agreement for their Bambu shop, they have an option to terminate the development agreement, which outlines the schedule for opening multiple locations.
This difference is important for prospective franchisees to understand. If a franchisee signs a Multi-Unit Development Agreement with Bambu, they have the flexibility to terminate that agreement with 60 days' notice, giving them an exit option if they decide not to proceed with opening all the locations initially planned. However, once a Franchise Agreement is signed for a specific Bambu location, the franchisee is committed to the terms of that agreement, as there is no provision for the franchisee to terminate it.