What happens if a Bambu franchisee fails to purchase the required insurance coverage?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
You must procure, maintain and provide evidence of certain types and amounts of insurance coverage described in the FRC Materials. These types of insurance include comprehensive general liability, products
liability, unemployment and worker's compensation, personal property, business interruption, owned and non-owned auto liability and builder's risk coverage and an umbrella policy. We recommend that you also carry employee dishonesty insurance. If you fail to purchase the required insurance, we may demand that you cease operations or obtain insurance for you and you must reimburse us for the cost of the insurance. All insurance policies must name us as an additional insured and give us at least 30 days prior written notice of termination, amendment or cancellation. You also must provide us with certificates of insurance evidencing your insurance coverage before the opening of your shoppe, upon any changes in the coverage that we require, and at least 30 days' prior to the expiration of any existing policies. You must furnish us with copies of all required insurance policies or other evidence of insurance coverage and payment of premiums as we request from time to time. We reserve the right to require you to change the types and amounts of insurance you are required to maintain upon 60 days' prior written notice to you.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 22–26)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are required to procure and maintain specific types and amounts of insurance coverage as detailed in the FRC Materials. These insurance types include comprehensive general liability, products liability, unemployment and worker's compensation, personal property, business interruption, owned and non-owned auto liability, builder's risk coverage, and an umbrella policy. Bambu also recommends that franchisees carry employee dishonesty insurance.
If a Bambu franchisee fails to purchase the required insurance, Bambu has the right to demand that the franchisee cease operations until the insurance is obtained. Alternatively, Bambu may choose to obtain the necessary insurance coverage on behalf of the franchisee. In such cases, the franchisee is responsible for reimbursing Bambu for the full cost of the insurance.
All insurance policies must name Bambu as an additional insured and provide Bambu with at least 30 days' prior written notice of any termination, amendment, or cancellation of the policy. Franchisees must also provide certificates of insurance to Bambu, evidencing their coverage, before the opening of their shoppe, upon any changes in the required coverage, and at least 30 days before the expiration of any existing policies. Franchisees are required to furnish copies of all required insurance policies or other evidence of insurance coverage and payment of premiums as requested by Bambu from time to time. Bambu reserves the right to change the types and amounts of insurance required, providing 60 days' prior written notice to the franchisee.