What sections of the Bambu Franchise Agreement apply to the franchisee after termination of a hold-over period?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If for any reason, Franchisee continues to operate the shoppe beyond the term of this Agreement or any subsequent successor franchise period, it shall be deemed to be on a month-to-month basis under the terms of this Agreement and subject to termination upon 30 days' written notice or as required by law.
If said holdover period exceeds 90 days, this Agreement is subject to immediate termination unless applicable law requires a longer period.
Upon termination after any hold-over period, Franchisee and those in active concert with Franchisee, including family members, officers, directors, partners and managing agents, are subject to the terms of Sections 19.3, 19.4, 21.2 and 21.3 of this Agreement and all other applicable post-termination obligations contained in this Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee continues to operate the shoppe beyond the original term or any subsequent franchise period, it is considered a month-to-month basis under the existing agreement. This holdover period is subject to termination with a 30-day written notice or as required by law. If the holdover exceeds 90 days, the agreement is subject to immediate termination unless a longer period is mandated by applicable law.
Upon termination after any hold-over period, the franchisee and those associated with the franchisee, including family members, officers, directors, partners, and managing agents, are subject to specific sections of the agreement. These sections include 19.3, 19.4, 21.2, and 21.3, as well as all other applicable post-termination obligations outlined in the Franchise Agreement.
These sections likely cover aspects such as post-termination duties, non-compete clauses, and confidentiality obligations. It is important for a prospective franchisee to carefully review these sections within the Franchise Agreement to fully understand their responsibilities and restrictions following the termination of the franchise, especially after a hold-over period.