How many days does a Bambu franchisee have to dismiss a non-compliant legal action after notification from Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- u. Filing Non-Compliant Legal Action. Franchisee or any of the Franchisee Affiliates, as defined in Section 23.1, files or otherwise commences litigation, arbitration, or any other legal action against Bambu or any of the Bambu Affiliates, as defined in Section 23.1, that is not in compliance with the dispute resolution terms agreed upon in Article 23 as may be modified by any applicable rider in Attachment IV, and fails to dismiss such action within seven days after notification from Bambu.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee has seven days to dismiss a legal action against Bambu that does not comply with the agreed-upon dispute resolution terms. This seven-day period begins after the franchisee receives notification from Bambu regarding the non-compliant legal action. Failure to dismiss the action within this timeframe could lead to further action by Bambu, as outlined in the franchise agreement.
This requirement is significant because it enforces the dispute resolution process outlined in the franchise agreement, which likely includes methods like mediation or arbitration before resorting to litigation. By requiring a quick dismissal of non-compliant lawsuits, Bambu aims to control legal costs and maintain consistent dispute resolution practices across its franchise system.
For a prospective franchisee, this means understanding and adhering to the dispute resolution terms in Article 23 of the franchise agreement. If a franchisee initiates a legal action against Bambu, they must ensure it complies with these terms. If Bambu notifies them that the action is non-compliant, the franchisee must act quickly to dismiss the action within the seven-day window to avoid potential penalties or termination of the franchise agreement.