What specific services can Bambu suspend to a Bambu franchisee upon default?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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. Bambu reserves the right to charge the Franchisee a fee to recover any internal and third party costs incurred by Bambu and associated with the default process including reinstating and certifying Franchisee's Bambū shoppe to reopen for business. Franchisee is not relieved of any obligation to pay any fees during the term of any suspension. The rights afforded to Bambu in this Section 19.5 are in addition to any other rights of Bambu upon a default by Franchisee.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee receives a notice of default, Bambu has the right to suspend services provided to the franchisee. These services can be suspended by Bambu or any of its affiliates.
The services that Bambu may suspend include those related to advertising or promotion of the franchisee's Bambū shoppe. One specific example provided in the FDD is the listing of the franchisee's Bambū shoppe on Bambu's website. This suspension can continue until the franchisee addresses each default outlined in the notice and is considered in good standing by Bambu.
Bambu also reserves the right to charge the franchisee a fee to cover any internal and third-party costs associated with the default process. This includes the costs of reinstating and certifying the Bambū shoppe to reopen for business. Importantly, the franchisee is still obligated to pay all fees during any period of suspension. The right to suspend services is in addition to any other rights Bambu has upon a franchisee's default.