When must Bambu provide written notice of its intention to exercise its purchase option in the case of termination of the franchise agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Bambu's option shall be exercisable by providing Franchisee with written notice of its intention to exercise the option no later than the effective date of termination, in the case of termination (unless Franchisee terminates without notice or Bambu terminates for cause, in which case Bambu shall have 30 days after receipt of actual notice of the termination or such additional time as is reasonably necessary given the circumstances), or at least 30 days prior to the expiration of the term of the franchise, in circumstances where no successor franchise is granted;
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has specific timelines for providing written notice of its intent to exercise its purchase option if the franchise agreement is terminated. Generally, Bambu must provide written notice to the franchisee no later than the effective date of termination.
However, there are exceptions to this general rule. If the franchisee terminates the agreement without notice, or if Bambu terminates the agreement due to the franchisee's cause, Bambu has 30 days after receiving actual notice of the termination to provide written notice of its intent to exercise the purchase option. Bambu may also have such additional time as is reasonably necessary given the circumstances.
In cases where no successor franchise is granted, Bambu must provide written notice at least 30 days before the franchise term expires. These stipulations ensure that the franchisee is informed of Bambu's intentions within a reasonable timeframe, allowing for a smooth transition of ownership if Bambu chooses to exercise its purchase option.