What was the geographic area at the center of the dispute between Bambu and Sweet Delights?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
TION
Concluded Proceedings Involving Us
Sweet Delights by cLc, LLC, d/b/a BAMBU Mays Landing v. Bambu Franchising, LLC and Sadia & Nadia, LLC d/b/a BAMBU Atlantic City, Case No. ATL-C-34-22, in the Superior Court of New Jersey, Chancery Division – General Equity for the County of Atlantic, State of New Jersey. On June 8, 2022, Sweet Delights by cLc, LLC (the "Plaintiff"), a franchisee of ours, filed its Verified Complaint against us and Sadia & Nadia, LLC d/b/a BAMBU Atlantic City, another franchisee of ours (the "Defendant Franchisee"). The Defendant Franchisee was subsequently dismissed from the action, the action was transferred to the Superior Court of New Jersey, Law Division, Atlantic County under Case No. ATL-L-707-23, and the Plaintiff filed an Amended Complaint against us. Plaintiff alleged we granted it an exclusive territory that included all of Atlantic County, New Jersey, including Atlantic City, and that we subsequently granted a franchise to the Defendant Franchisee for a location in Atlantic City. We denied all claims and brought counterclaims asserting that the Plaintiff's franchise agreement was terminated because the franchisee closed down one of its shoppes without our consent. The parties entered into a Settlement Agreement pursuant to which the parties agreed that the Plaintiff's franchise agreement would remain in effect, but with no extension or renewal rights and with a redefined Protected Area. We also agreed to accrue the delinquent monthly marketing fees the Plaintiff then owed to us until the termination or expiration of Plaintiff's franchise agreement, with a percentage of those fees to be waived if certain conditions are met. Also, if the Plaintiff transferred its franchise, we would provide certain transfer assistance, a reduction in the transfer fee and other benefits to the Plaintiff, and if a transfer occurred by a certain date, we agreed to pay the Plaintiff $30,000 one year following the date of the tra
Source: Item 3 — Litigation (FDD pages 12–13)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the dispute between Bambu and its franchisee, Sweet Delights, centered around Atlantic County, New Jersey, specifically including Atlantic City. Sweet Delights alleged that Bambu granted them an exclusive territory covering all of Atlantic County, including Atlantic City. Subsequently, Bambu granted a franchise to another franchisee, Sadia & Nadia, LLC, for a location in Atlantic City, which Sweet Delights claimed violated their exclusive territory agreement.
The dispute led to a lawsuit filed by Sweet Delights against Bambu and Sadia & Nadia, LLC. The case was initially filed in the Superior Court of New Jersey, Chancery Division – General Equity for the County of Atlantic, but was later transferred to the Law Division. Ultimately, the parties reached a settlement agreement.
Under the settlement, Sweet Delights' franchise agreement remained in effect, but without any extension or renewal rights. The agreement also redefined the Protected Area granted to Sweet Delights. This indicates that the core issue was the scope and exclusivity of the territory initially granted to Sweet Delights and whether Bambu had the right to grant another franchise within that area. The settlement also included terms regarding delinquent marketing fees, transfer assistance, and a potential payment of $30,000 to Sweet Delights under certain conditions related to the transfer of the franchise.