What is the minimum period of abandonment that triggers Bambu's right to terminate the Bambu franchise agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Bambu shall have the right, at its option, to terminate this Agreement and all rights granted Franchisee hereunder, without affording Franchisee any opportunity to cure any default (except where expressly indicated and subject to any state laws to the contrary, where state law shall prevail), effective upon notice to Franchisee upon the occurrence of any of the following events:
- a.
Abandonment.
If Franchisee ceases to operate the Bambū shoppe or otherwise abandons the Bambū shoppe for a period of three consecutive days, or any shorter period that indicates an intent by Franchisee to discontinue operation of the Bambū shoppe.
Franchisee's suspension or termination of the shoppe's operation due to fire, flood, earthquake, epidemic or pandemic, or force majeure shall not be deemed abandonment.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu can terminate the franchise agreement if a franchisee abandons the Bambu shop for at least three consecutive days. This abandonment clause also applies if a shorter period indicates the franchisee's intent to discontinue operations. However, the termination is effective upon notice to the franchisee.
This provision means that if a Bambu franchisee closes their shop for three consecutive days without a valid reason, Bambu has the right to terminate the franchise agreement. The exception to this is if the closure is due to events like fire, flood, earthquake, epidemic, pandemic, or force majeure, which are not considered abandonment.
It is important to note that the determination of abandonment can be subjective if it involves a period shorter than three days. Bambu would need to demonstrate that the franchisee intended to discontinue operations. This clause protects Bambu from franchisees who may be neglecting their business or planning to close without properly notifying Bambu, while also providing some leniency for closures due to uncontrollable events.