What was the new case number after the action was transferred in the lawsuit between Sweet Delights and Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
TION
Concluded Proceedings Involving Us
Sweet Delights by cLc, LLC, d/b/a BAMBU Mays Landing v. Bambu Franchising, LLC and Sadia & Nadia, LLC d/b/a BAMBU Atlantic City, Case No. ATL-C-34-22, in the Superior Court of New Jersey, Chancery Division – General Equity for the County of Atlantic, State of New Jersey. On June 8, 2022, Sweet Delights by cLc, LLC (the "Plaintiff"), a franchisee of ours, filed its Verified Complaint against us and Sadia & Nadia, LLC d/b/a BAMBU Atlantic City, another franchisee of ours (the "Defendant Franchisee"). The Defendant Franchisee was subsequently dismissed from the action, the action was transferred to the Superior Court of New Jersey, Law Division, Atlantic County under Case No. ATL-L-707-23, and the Plaintiff filed an Amended Complaint against us. Plaintiff alleged we granted it an exclusive territory that included all of Atlantic County, New Jersey, including Atlantic City, and that we subsequently granted a franchise to the Defendant Franchisee for a location in Atlantic City. We denied all claims and brought counterclaims asserting that the Plaintiff's franchise agreement was terminated because the franchisee closed down one of its shoppes without our consent. The parties entered into a Settlement Agreement pursuant to which the parties agreed that the Plaintiff's franchise agreement would remain in effect, but with no extension or renewal rights and with a redefined Protected Area. We also agreed to accrue the delinquent monthly marketing fees the Plaintiff then owed to us until the termination or expiration of Plaintiff's franchise agreement, with a percentage of those fees to be waived if certain conditions are met. Also, if the Plaintiff transferred its franchise, we would provide certain transfer assistance, a reduction in the transfer fee and other benefits to the Plaintiff, and if a transfer occurred by a certain date, we agreed to pay the Plaintiff $30,000 one year following the date of the tra
Source: Item 3 — Litigation (FDD pages 12–13)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a lawsuit was filed by Sweet Delights by cLc, LLC against Bambu Franchising, LLC and Sadia & Nadia, LLC. The case, initially filed in the Superior Court of New Jersey, Chancery Division – General Equity for the County of Atlantic, State of New Jersey under Case No. ATL-C-34-22, was later transferred.
After the Defendant Franchisee was dismissed from the action, the case was moved to the Superior Court of New Jersey, Law Division, Atlantic County. The new case number assigned to the lawsuit following this transfer was ATL-L-707-23. Sweet Delights then filed an Amended Complaint against Bambu.
The lawsuit involved allegations that Bambu granted Sweet Delights an exclusive territory covering all of Atlantic County, New Jersey, including Atlantic City, but subsequently granted a franchise to Sadia & Nadia, LLC for a location in Atlantic City. Bambu denied these claims and counterclaimed that Sweet Delights' franchise agreement was terminated because they closed a shop without consent. The parties eventually reached a settlement, the terms of which included maintaining Sweet Delights' franchise agreement (without extension or renewal rights) with a redefined Protected Area, accruing delinquent marketing fees, and potential transfer assistance and payments under certain conditions. The case was dismissed on May 9, 2024.