Can the Bambu franchisor terminate the Franchise Agreement without cause?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (e) | Termination by franchisor without cause | Not applicable | Not applicable |
| (f) | Termination by franchisor with cause | Sections 19.1 and 19.2 of FA; Sections 4.3 and 4.4 of MUDA | We can terminate only if you commit any one of several listed violations. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu cannot terminate the Franchise Agreement without cause. Item 17 outlines the terms for renewal, termination, transfer, and dispute resolution.
The table within Item 17 details various provisions related to termination. Specifically, provision (e) addresses termination by the franchisor without cause, and it is explicitly marked as "Not applicable." This means that the standard Franchise Agreement does not allow Bambu to terminate the agreement simply at will, without a specified reason or violation on the part of the franchisee.
Instead, Bambu can only terminate the agreement if the franchisee commits one of several listed violations, as detailed in Sections 19.1 and 19.2 of the Franchise Agreement and Sections 4.3 and 4.4 of the Multi-Unit Development Agreement. These violations would constitute the "cause" required for termination. This is a standard protection for franchisees, ensuring they are not subject to arbitrary termination, provided they adhere to the terms and conditions of the agreement.