If 'Other Agreements' are terminated due to a franchisee's default, can Bambu terminate the Bambu franchise agreement?

According to Bambu's 2025 Franchise Disclosure Document, a default by a franchisee under agreements other than the franchise agreement can lead to the termination of the Bambu franchise agreement. Specifically, if a franchisee or any affiliated company defaults under any 'Other Agreements' with Bambu or its affiliates, Bambu has the option to terminate the franchise agreement. This is known as a cross-default provision.

This cross-default provision means that franchisees must maintain compliance not only with their franchise agreement but also with any other agreements they or their affiliated companies have with Bambu. These 'Other Agreements' are not specifically defined in the provided excerpts but could include leases, financing agreements, or supply contracts. The termination of any of these agreements due to a franchisee's default gives Bambu the right to terminate the franchise agreement itself.

Bambu states that an incurable or uncured default under the franchise agreement or any of the 'Other Agreements' will be grounds for termination of the franchise agreement and/or any and all of the 'Other Agreements' without additional notice or opportunity to cure. This clause emphasizes the importance of adhering to all agreements with Bambu and suggests that any breach, if not promptly resolved, could have severe consequences, including the loss of the franchise. Prospective franchisees should carefully review all agreements and seek legal counsel to fully understand their obligations and the potential ramifications of a default.