What is the Bambu franchisee's responsibility regarding penalties or fines assessed for failure to abide by such laws and regulations at a Bambu franchise?

According to Bambu's 2025 Franchise Disclosure Document, the franchisee is solely responsible for any penalties or fines if they fail to follow all applicable laws and regulations. This means that if a Bambu franchise does not comply with local, state, or federal laws, the franchisee will be the one held liable for any resulting fines or penalties. Bambu has no obligation to advise the franchisee of any legislative or other legal developments that may affect their Bambu shop. Franchisees are responsible for familiarizing themselves with all applicable laws, ordinances, and regulations.

This responsibility extends to all aspects of the business, including obtaining necessary licenses, complying with health department regulations, and adhering to labor laws. Bambu's provision of any information regarding applicable laws does not relieve the franchisee of their responsibility to consult with their own legal advisor and take appropriate action to comply with these laws. The franchisee must resolve or address any issues in a prompt and reasonable manner according to good business practices.

This aspect of the franchise agreement highlights the importance of due diligence and legal compliance for prospective Bambu franchisees. It is crucial for franchisees to stay informed about all relevant laws and regulations and to seek professional legal advice to ensure they are operating their business in full compliance. Failure to do so can result in significant financial penalties and legal repercussions, for which the franchisee alone will be held accountable.