Did Bambu's predecessors admit or deny the allegations in the Virginia case?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Proceedings Against Only Our Predecessors
- Commonwealth of Virginia, ex rel., State Corporation Commission v. Bambu IP, LLC, Bambu Desserts & Drinks, Inc. and Kimhong Thi Nguyen (also known as Kelly Nguyen), Case no. SEC-2015-00028. In 2015, the Virginia State Corporation Commission opened an investigation into a complaint against our predecessors BIP and BDDI, and a principal of the predecessors, made by a licensee in Virginia who purchased a license from the predecessors in 2013. Without admitting or denying the Commission's allegations, the predecessors signed a Settlement Order with the Commission effective August 11, 2016, concluding the Commission's investigation into whether a violation of Section 13.1-560 and Section 13.1-563(4) of the Virginia Retail Franchising Act had occurred. Under the Settlement Order, we paid on behalf of the predecessors $80,000 in restitution to the Virginia licensee and $4,500 to the Commission for penalties and investigation costs. A Final Order was entered on October 25, 2016, dismissing the case. Our predecessors ha
Source: Item 3 — Litigation (FDD pages 12–13)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, in 2015, the Virginia State Corporation Commission investigated Bambu IP, LLC, Bambu Desserts & Drinks, Inc. (BIP and BDDI), and Kimhong Thi Nguyen, principals of Bambu's predecessors, due to a complaint from a Virginia licensee who purchased a license in 2013.
To resolve the investigation, Bambu's predecessors signed a Settlement Order with the Commission effective August 11, 2016, without admitting or denying the Commission's allegations. As part of the settlement, Bambu paid $80,000 in restitution to the Virginia licensee on behalf of its predecessors, as well as $4,500 to the Commission for penalties and investigation costs.
A Final Order was entered on October 25, 2016, dismissing the case, and Bambu's predecessors reimbursed Bambu for one-half of the settlement amounts. This resolution allowed Bambu's predecessors to conclude the investigation without a formal admission of wrongdoing, which is a fairly common legal strategy to avoid potential future liabilities.