How much written notice is required to terminate a Bambu franchise operating on a month-to-month basis after the initial term?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If for any reason, Franchisee continues to operate the shoppe beyond the term of this Agreement or any subsequent successor franchise period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' written notice or as required by law.
If said holdover period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period.
Upon termination after any hold-over period, Franchisee and those in active concert with Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 19.3, 19.4, 21.2 and 21.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee continues to operate the shoppe beyond the initial 10-year term or any subsequent franchise period, the operation is considered on a month-to-month basis. In this situation, either Bambu or the franchisee can terminate the agreement with 30 days' written notice, unless the law requires a different notice period.
If the holdover period extends beyond 90 days, Bambu has the right to terminate the agreement immediately, unless applicable law mandates a longer period. Upon termination after any hold-over period, the franchisee is subject to post-termination obligations detailed in the franchise agreement.
This means that a Bambu franchisee who continues operating after the initial term without a new agreement does so under a short-term, less secure arrangement. The franchisee must be prepared to potentially cease operations with only 30 days' notice, creating uncertainty for their business. It is important for franchisees to actively manage the renewal process to avoid unintentionally entering a month-to-month arrangement.