Is Bambu responsible for damages arising from the operation of the franchisee's business?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
e independent businesspersons, that their only relationship is by virtue of this Agreement and that no fiduciary relationship is created hereunder. Neither party is liable or responsible for the other's debts or obligations, nor shall either party be obligated for any damages to any person or property directly or indirectly arising out of the operation of the other party's business authorized by or conducted pursuant to this Agreement. Neither Bambu nor Franchisee will hold themselves out to be the agent, employer or partner of the other and neither Bambu nor Franchisee has the authority to bind or incur liability on behalf of the other. All employees hired by or working for Franchisee shall be the employees of Franchisee and shall not, for any purpose, be deemed employees of Bambu or subject to Bambu's control. Neither this Agreement nor the course of conduct between Bambu and Franchisee is intended, nor may anything in this Agreement (or the course of conduct) be construed, to state or imply that Bambu is the employer of Franchisee's Authorized Representatives, or vice versa. Each of the parties agrees to file its own tax, regulatory and payroll reports with respect to its respective employees and operations. Notwithstanding any other provisions in this Agreement, Bambu shall not be responsible for supervising the activities of Franchisee's Bambū shoppe or ensuring that the Bambū shoppe is operated in compliance with applicable laws.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu is not responsible for damages arising from the operation of the franchisee's business. The agreement specifies that the relationship between Bambu and its franchisees is that of independent businesspersons, and no fiduciary relationship is created. This means each party is responsible for their own debts and obligations.
Specifically, Bambu is not liable for any damages to any person or property that arise directly or indirectly from the operation of the franchisee's Bambu location. The franchisee is responsible for conspicuously posting a notice in their shop identifying it as individually owned and operated. This reinforces the independent nature of the business and clarifies that Bambu is not overseeing the daily activities of the franchise location or ensuring compliance with applicable laws.
Furthermore, the franchisee is required to indemnify, defend, and hold harmless Bambu from any claims, obligations, and damages that arise from the operation of the Bambu shop. This includes claims related to violations of laws, including labor and employment laws, and extends to the acts or omissions of the franchisee's employees and agents. This indemnification clause ensures that the franchisee bears the responsibility for any liabilities resulting from their business operations, protecting Bambu from potential legal and financial repercussions.