If a judgment is obtained against a Bambu franchisee, does filing a supersedeas bond provide an exception to the termination clause?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If any material judgment (or several judgments which in the aggregate are material) is obtained against Franchisee and remains unsatisfied or of record for 30 days or longer (unless a supersedeas or other appeal bond has been filed); or if execution is levied against Franchisee's business or any of the property used in the operation of the Bambū shoppe and is not discharged within five days; or if the real or personal property of Franchisee's business shall be sold after levy thereupon by any sheriff, marshal or constable.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee can avoid termination of their agreement if a material judgment is obtained against them, provided they file a supersedeas or other appeal bond. Specifically, if a material judgment remains unsatisfied for 30 days or longer, Bambu has grounds for termination. However, this termination clause is waived if the franchisee files a supersedeas bond, which essentially suspends the judgment while an appeal is pending.
This condition protects the Bambu franchisee from immediate termination due to a judgment that they are actively appealing. It allows the franchisee to continue operating their business while pursuing legal recourse. Without this provision, a franchisee could face immediate closure even if they have a strong case for appeal.
It is important to note that the judgment must be material for this clause to apply. The FDD does not define "material," so a franchisee should seek clarification from Bambu on what constitutes a material judgment in their specific circumstances. Additionally, the supersedeas bond must be filed within 30 days of the judgment to prevent termination.