After termination of a Bambu franchise, which sections of the agreement apply to the franchisee and those in active concert with the franchisee?
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 initial term of the Franchise Agreement or any subsequent successor franchise period, it will be considered a month-to-month basis under the terms of the agreement. This arrangement is subject to termination with a 30-day written notice or as required by law.
Should the holdover period exceed 90 days, the Franchise Agreement is subject to immediate termination, unless a longer period is required by applicable law. Upon termination after any hold-over period, the franchisee and those in active concert with the 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 the Franchise Agreement.
In practical terms, this means that if a Bambu franchisee continues to operate their location after the franchise term expires without a formal renewal, they are essentially operating on a short-term, month-to-month basis. If Bambu terminates the agreement after this holdover period, certain post-termination obligations outlined in the specified sections of the agreement will apply not only to the franchisee but also to individuals closely associated with them, such as family members and business partners. These sections likely cover aspects such as non-compete clauses, confidentiality, and the return of proprietary information, ensuring that the franchisee and related parties do not unfairly compete with Bambu after the franchise relationship ends.