How much advance notice will Bambu provide to the franchisee regarding a modification to the Franchise Agreement based on a Super-Majority approval?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Bambu shall provide Franchisee with notice of any modification to this Agreement based on a Super-Majority approval at least 30 days prior to the date such modification is to be effective.
By signing this Agreement, Franchisee appoints the officers of Bambu as its attorneys in fact with irrevocable power and authority to execute any such modification so approved.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu will provide franchisees with at least 30 days' notice before any modification to the Franchise Agreement takes effect, provided the modification was approved by a Super-Majority of franchisees. A "Super-Majority" consists of owners of at least 75% of all Bambu shoppe franchises and licenses, or if the modification only affects a portion of the shoppes, at least 75% of those affected.
This means that if a significant percentage of franchisees agree on a change, Bambu can implement that change across the board, even if an individual franchisee disagrees. The 30-day notice period allows franchisees some time to prepare for the change, but it's important to recognize that they may not have the power to prevent it.
By signing the Franchise Agreement, franchisees appoint Bambu's officers as their attorneys in fact, granting them the authority to execute any modifications approved by a Super-Majority. This highlights the importance of understanding and trusting the Bambu leadership, as they can make changes to the agreement on the franchisee's behalf under certain conditions. Franchisees should carefully consider this aspect and seek legal counsel to fully understand the implications of this clause.