Which provisions of the Bambu Franchise Agreement survive termination or expiration?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 24.11 Survival of Provisions.
Any provisions that by their terms extend beyond termination or expiration of this Agreement shall continue in full force and effect subsequent to and notwithstanding the termination or expiration of this Agreement.
- 19.4 Obligations of Franchisee Upon Termination or Expiration. Franchisee is obligated upon termination or expiration of this Agreement to immediately:
- a. Pay to Bambu all fees, inventory and supply purchases and other charges owed to Bambu or its affiliates pursuant to this Agreement, or pursuant to any other agreement, whether written or oral, including subleases and lease assignments, between the parties, within 10 days of the date of termination or expiration. In the event of a termination due to a default by Franchisee, the amounts owed to Bambu shall include an amount equal to the monthly Royalty Fees that would have been payable for each month from the date of termination until the expiration date that would apply to this Agreement had it not been terminated.
- b.
Cease to identify itself as a Bambū franchisee or publicly identify itself as a former Franchisee or use any of Bambu's trade secrets, signs, symbols, devices, trade names, trademarks or other materials.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, any provisions within the Franchise Agreement that, by their explicit terms, are designed to extend beyond the termination or expiration of the agreement will remain in full effect even after the agreement concludes.
Upon termination or expiration of the Franchise Agreement, a franchisee is obligated to immediately pay Bambu all outstanding fees, inventory, supply purchases, and other charges owed to Bambu or its affiliates, as per the Franchise Agreement or any other agreement (written or oral), including subleases and lease assignments, between the parties, within 10 days of the termination or expiration date. If the termination results from a franchisee's default, the owed amounts will include the monthly Royalty Fees that would have been payable for each month from the termination date until the original expiration date of the agreement.
Additionally, the franchisee must cease identifying themselves as a Bambu franchisee or a former franchisee, and they must discontinue using any of Bambu's trade secrets, signs, symbols, devices, trade names, trademarks, or other proprietary materials. These post-termination obligations are typical in franchise agreements to protect the brand and proprietary information of Bambu.