What restrictive covenants in Article 21 must a Bambu franchisee abide by after termination or expiration?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
greement as conclusive of Bambu's exclusive rights in such telephone numbers and directory listings and Bambu's authority to direct their transfer.
- h. If applicable, take such action as may be required to remove from the Internet all sites and social media accounts referring to Franchisee's former Bambū shoppe or any of the Marks and to cancel or assign to Bambu, in Bambu's sole discretion, all rights to any domain names for any sites on the Internet and social media accounts that refer to Franchisee's former Bambū shoppe or any of the Marks.
- i. Abide by all restrictive covenants set forth in Article 21 of this Agreement and, if exercised by Bambu, Bambu's option to purchase described in Section 19.3 of this Agreement.
- 19.5 Bambu's Right to Suspend Services on Franchisee's Default. If Bambu has provided Franchisee with a notice of any default pursuant to this Article 19, in addition to Bambu's other remedies, Bambu reserves the right, on behalf of itself and the Bambu Affiliates, to suspend any services to be provided by Bambu or any Bambu Affiliate or the sales of any products to Franchisee by Bambu or any Bambu Affiliate until such time as Franchisee cures the default. The services that may be suspended include but are not limited to any services related to advertising or promotion of Franchisee's Bambū shoppe such as the listing of Franchisee's Bambū shoppe on Bambu's website. The suspension may continue until Franchisee has cured each default identified in the default notice from Bambu and Franchisee is deemed to be in good
standing.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Article 21 contains restrictive covenants that a franchisee must adhere to even after the franchise agreement terminates or expires. Specifically, upon termination or expiration of the agreement, the franchisee must cease identifying themselves as a Bambu franchisee or publicly identify themselves as a former franchisee. They are also prohibited from using any of Bambu's trade secrets, signs, symbols, devices, trade names, trademarks, or other materials.
Additionally, the franchisee is obligated to remove all references to their former Bambu shop from the internet, including websites and social media accounts. They must also transfer or cancel any domain names associated with these online presences, as directed by Bambu. These measures ensure that the franchisee does not continue to benefit from Bambu's brand recognition and proprietary information after the agreement ends.
These post-termination covenants are designed to protect Bambu's brand and proprietary information. The franchisor can enforce these covenants, and the franchisee acknowledges that any claims they may have against Bambu do not constitute a defense against the enforcement of these covenants. Bambu is also entitled to offset any losses resulting from a franchisee's breach of these covenants from any amounts it may owe the franchisee.