What happens if a Bambu franchisee breaches the post-termination non-compete agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Consequently, enforcement of this covenant will not deprive Associate of his or her personal goodwill or ability to earn a living.
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- Injunction. Associate acknowledges and agrees that in the event of any breach or threatened breach of this Agreement, Bambu and Franchisee, or either one separately, shall be authorized and entitled to seek, from any court of competent jurisdiction, preliminary and permanent injunctive relief in addition to any other rights or remedies to which Bambu and/or Franchisee may be entitled. Associate agrees that Bambu may obtain such injunctive relief, without posting a bond or bonds totaling more than $500, but upon due notice, and Associate's sole remedy in the event of the entry of such injunctive relief shall be dissolution of such injunctive relief, if warranted, upon hearing duly had
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee breaches or threatens to breach the non-compete agreement, Bambu is authorized to seek preliminary and permanent injunctive relief from a court of competent jurisdiction. This is in addition to any other rights or remedies Bambu may have.
This means that Bambu can take legal action to prevent a franchisee from engaging in activities that violate the non-compete agreement. Injunctive relief is a court order that requires the franchisee to stop the prohibited behavior. This remedy is designed to protect Bambu's interests and prevent unfair competition.
The document also states that Bambu may obtain injunctive relief without posting a bond or bonds totaling more than $500, provided they give due notice. The franchisee's sole remedy in the event of such injunctive relief is to seek its dissolution if warranted after a hearing. The franchisee expressly waives all claims for damages resulting from the wrongful issuance of any injunction. This limits the franchisee's recourse if they believe the injunction was wrongly issued.