What is the general cure period for other defaults by a Bambu franchisee under the Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (a) | Length of the franchise term | Section 18.1 of Franchise Agreement ("FA"); Section 4.1 of Multi-Unit Development Agreement ("MUDA") | 10 years for the Franchise Agreement. For the MUD Agreement, the term extends until the earlier of the date that you sign the Franchise Agreement for the final Bambū shoppe to be developed under the MUD Agreement or the deadline in the development schedule for signing that Franchise Agreement. |
| (b) | Renewal or extension of the term | Sections 18.3 and 18.4 of FA | If you meet certain criteria, you may acquire successor franchise rights for the term stated in the then current Franchise Agreement. |
| (c) | Requirements for franchisee to renew or extend | Section 18.3 of FA | Provide notice to us, no more than 3 defaults, remodel shoppe, attend additional training, pay fee, sign new agreement and a Successor Franchise Rider in the form attached as Exhibit E containing a release. If you seek to acquire successor franchise rights, you may be required to sign a contract with materially different terms and conditions than your original contract. |
| (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.) |
| (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. |
| (g) | "Cause" defined-curable defaults | Sections 19.1 and 19.2 of FA; Section 4.3 of MUDA | For the Franchise Agreement: 48 hours for misuse of the Marks, purchases from unapproved suppliers, or other failures to comply with FRC Materials or other standards, 5 days for monetary defaults, 7 days for filing of a legal action in violation of the dispute resolution terms in the Franchise Agreement, and generally 30 days for other defaults. For the Development Agreement: 30 days' notice for breach. If we provide you with a notice of default, we and our affiliates may suspend services to you until each default is cured. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee generally has 30 days to cure defaults other than specific violations. These specific violations include misuse of marks, purchases from unapproved suppliers, or other failures to comply with FRC Materials or other standards (48 hours to cure); monetary defaults (5 days to cure); and filing of a legal action in violation of the dispute resolution terms in the Franchise Agreement (7 days to cure). If a franchisee fails to cure a default within the specified time frame, Bambu has grounds to terminate the Franchise Agreement.
It is important for prospective Bambu franchisees to understand the different types of defaults and their corresponding cure periods to avoid potential termination of their franchise agreement. Franchisees should also be aware that if Bambu provides a notice of default, they and their affiliates may suspend services until each default is cured.
This termination clause is a standard inclusion in franchise agreements. Franchisees should maintain open communication with Bambu to address any issues promptly and ensure compliance with the agreement's terms. Understanding these provisions is crucial for maintaining a healthy and compliant franchise relationship with Bambu.