For how long can Bambu suspend services to a Bambu franchisee who is in default?
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 a franchisee receives a notice of default, Bambu can suspend services until the franchisee cures the default and is considered in good standing. These services can include advertising and promotion, such as listing the franchisee's Bambū shoppe on Bambu's website.
This means that a Bambu franchisee could face a period where Bambu withholds essential support services if they fail to meet the obligations outlined in their franchise agreement. This could significantly impact the franchisee's ability to attract customers and maintain their business operations.
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 reinstating and certifying the Bambū shoppe to reopen for business. Importantly, the franchisee is still obligated to pay all fees during the suspension period. This highlights the potential financial burden on a franchisee during a period of suspended services, as they must continue to meet their financial obligations while also addressing the default and covering associated costs.
This policy is fairly standard in franchising, as franchisors need mechanisms to ensure brand consistency and compliance. However, prospective Bambu franchisees should carefully review the default provisions in Article 19 of the franchise agreement to fully understand what constitutes a default and what steps are required to cure it, as well as the potential costs involved.