Who is responsible for penalties or fines assessed for failure to abide by laws and regulations at a Bambu franchise?

According to Bambu's 2025 Franchise Disclosure Document, the franchisee is solely responsible for any penalties or fines assessed for failure to abide by laws and regulations. This means that if a Bambu franchise fails to comply with applicable laws, rules, regulations, and ordinances, including health department regulations, the franchisee will be responsible for paying any resulting penalties or fines.

This responsibility extends to obtaining all necessary licenses to operate the Bambu shoppe. The franchisee is also required to promptly forward copies of inspection reports from various departments (health, fire, building, etc.) to Bambu and notify Bambu of any legal actions, orders, or notices of violation related to the shoppe. The franchisee must resolve these issues in a timely manner according to good business practices.

Bambu has no obligation to advise the franchisee of any legislative or legal changes that may affect the Bambu shoppe. The franchisee is solely responsible for staying informed about and complying with all applicable laws and regulations. Any information provided by Bambu regarding these laws does not relieve the franchisee of their responsibility to consult with their own legal advisor and take appropriate action to ensure compliance.

This allocation of responsibility is typical in franchising, where franchisees are generally responsible for the day-to-day operations of their business and compliance with local laws. Prospective Bambu franchisees should be aware of this responsibility and ensure they have the resources and expertise to comply with all applicable laws and regulations.