What is the minimum period of disability that qualifies as 'permanent disability' for a Bambu franchisee?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or permanent disability of Franchisee (or the individual controlling Franchisee entity), the executor, administrator, conservator, guardian or other personal representative of such person shall transfer Franchisee's interest in this Agreement or such interest in Franchisee entity to a third party approved by Bambu.
Such disposition of this Agreement or such interest (including, without limitation, transfer by bequest or inheritance) shall be completed within a reasonable time, not to exceed 180 days from the date of death or permanent disability, and shall be subject to all terms and conditions applicable to transfers contained in this Article 17.
Failure to transfer the interest in this Agreement or such interest in Franchisee entity within said period of time shall constitute a breach of this Agreement.
For the purposes hereof, the term "permanent disability" shall mean a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent Franchisee or the owner of a controlling interest in Franchisee entity from supervising the management and operation of the Bambū shoppe for a period of 120 days from the onset of such disability, impairment or condition.
In any event, there shall at all times be a Bambū Certified Team Leader designated to be responsible for the management of the shoppe on a full-time basis who has complied with all of Bambu's training requirements, regardless of any death or disability covered in this Section.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee is considered permanently disabled if a mental or physical condition prevents them from supervising the Bambu shoppe's management and operation for at least 120 days from the onset of the condition.
If a franchisee experiences such a permanent disability, their representative (executor, administrator, etc.) must transfer the franchisee's interest in the franchise agreement to a Bambu-approved third party within 180 days of the disability. Failure to transfer the interest within this timeframe constitutes a breach of the franchise agreement.
Even in the event of death or disability, Bambu requires that a Bambu Certified Team Leader is always designated to manage the shoppe full-time, ensuring compliance with training requirements. This requirement aims to maintain operational standards regardless of the franchisee's personal circumstances.