Can Bambu place a Bambu franchisee's account on hold if they are not in compliance with the terms and conditions?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If Franchisee is in arrears on any payment to Bambu, its affiliates or a third party supplier, is in default under this Agreement or is otherwise not in compliance with the terms and conditions imposed by Bambu, its affiliates or any third party supplier for the purchase of any products or items, Bambu or its affiliates may discontinue selling or permitting the purchase through the account of Bambu or its affiliates of any products or other items to Franchisee and may place the account of Franchisee on hold and cease (directly or through third party suppliers) the delivery of products already ordered and not yet paid for.
Bambu and its affiliates shall also be entitled to interest, late fees (in accordance with Section 12.5 below) and to recover their reasonable attorneys' fees from Franchisee in connection with any legal action, arbitration or other proceeding brought by them to collect amounts owed by Franchisee for purchases of products and other items from or through Bambu or its affiliates.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has the right to place a franchisee's account on hold if the franchisee is not in compliance with the terms and conditions of the franchise agreement. This action can be taken if the franchisee is in arrears on any payment to Bambu, its affiliates, or a third-party supplier, or is in default under the agreement.
Specifically, Bambu or its affiliates may discontinue selling or permitting purchases through the franchisee's account and may cease the delivery of products already ordered but not yet paid for. This measure ensures that Bambu can protect its financial interests and maintain compliance across its franchise network.
In addition to placing the account on hold, Bambu is entitled to interest, late fees, and the recovery of reasonable attorneys' fees from the franchisee in connection with any legal action, arbitration, or other proceeding brought to collect amounts owed. This provision highlights the importance of franchisees adhering to the payment terms and overall conditions set forth by Bambu to avoid potential disruptions and additional financial burdens.