If Bambu provides a notice of default to a Bambu franchisee, can Bambu suspend services on behalf of Bambu Affiliates?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 19.5 Bambu's Right to Suspend Services on Franchisee's Default.
If Bambu has provided Franchisee with a notice of any default pursuant to this Article 19, in addition to Bambu's other remedies, Bambu reserves the right, on behalf of itself and the Bambu Affiliates, to suspend any services to be provided by Bambu or any Bambu Affiliate or the sales of any products to Franchisee by Bambu or any Bambu Affiliate until such time as Franchisee cures the default.
The services that may be suspended include but are not limited to any services related to advertising or promotion of Franchisee's Bambū shoppe such as the listing of Franchisee's Bambū shoppe on Bambu's website.
The suspension may continue until Franchisee has cured each default identified in the default notice from Bambu and Franchisee is deemed to be in good
standing. Bambu reserves the right to charge the Franchisee a fee to recover any internal and third party costs incurred by Bambu and associated with the default process including reinstating and certifying Franchisee's Bambū shoppe to reopen for business. Franchisee is not relieved of any obligation to pay any fees during the term of any suspension. The rights afforded to Bambu in this Section 19.5 are in addition to any other rights of Bambu upon a default by Franchisee.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if Bambu provides a franchisee with a notice of default, Bambu reserves the right to suspend services on behalf of itself and its affiliates. This is in addition to any other remedies Bambu may pursue. The suspension can last until the franchisee has corrected each default specified in the default notice and is considered in good standing.
The services that Bambu may suspend include those related to advertising or promotion of the franchisee's Bambu shop, such as listing the shop on Bambu's website. Bambu also reserves the right to charge the franchisee a fee to recover any internal and third-party costs associated with the default process, including the costs of reinstating and certifying the franchisee's Bambu shop to reopen for business.
It is important to note that the franchisee is still obligated to pay any fees during the suspension period. This means that even while the franchisee is unable to operate, they may still be responsible for ongoing costs. This policy highlights the importance of adhering to the franchise agreement and promptly addressing any defaults to avoid potential service suspensions and associated costs.