Is there a cure period allowed for any defaults before Bambu terminates the franchise agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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- s. Breach of Other Agreement. Franchisee breaches the terms of any other agreement between Bambu and Franchisee and fails to cure said breach during any applicable cure period provided in the other agreement.
- t. Inadequate Guaranties. Any guaranty of this Agreement fails to be a continuing obligation fully enforceable against the guarantor signing the guaranty, or there is any inadequacy of the guaranty or guarantor and the guarantor is unable to provide adequate assurances as required by Bambu.
- u. Filing Non-Compliant Legal Action. Franchisee or any of the Franchisee Affiliates, as defined in Section 23.1, files or otherwise commences litigation, arbitration, or any other legal action against Bambu or any of the Bambu Affiliates, as defined in Section 23.1, that is not in compliance with the dispute resolution terms agreed upon in Article 23 as may be modified by any applicable rider in Attachment IV, and fails to dismiss such action within seven days after notification from Bambu.
- 19.2 Termination by Bambu 30 Days' Notice. Bambu shall have the right to terminate this Agreement (subject to any state laws to the contrary, where state law shall prevail), effective upon 30 days' written notice to Franchisee, if Franchisee breaches any provision of this Agreement other than those provisions listed in Section 19.1 above and fails to cure the default during such 30-day period. In that event, this Agreement will terminate without further notice to Franchisee, effective upon expiration of the 30-day period. Defaults shall include, but not be limited to, any one the following:
- a. Deceptive Practices. Franchisee engages in any unauthorized business or practice or sells any unauthorized product or service under Bambu's Marks or under a name or mark which is confusingly similar to Bambu's Marks.
- b. Failure to Obtain Consent. Franchisee fails, refuses or neglects to obtain Bambu's prior written approval or consent as required by this Agreement.
Notwithstanding the foregoing, if the breach is curable, but is of a nature which cannot be reasonably cured within such 30-day period and Franchisee has commenced and is continuing to make good faith efforts to cure the breach during such 30-day period, Franchisee shall be given an additional reasonable period of time to cure the same, and this Agreement shall not automatically terminate without written notice from Bambu.
19.3 Right to Purchase. Except in the case of the grant of successor franchise rights under Article 18, upon termination or expiration of this Agreement for any reason, Bambu shall have the option to purchase the Bambū shoppe, or a portion of the assets of the Bambū shoppe, which may include, at Bambu's option, all of Franchisee's interest, leasehold or otherwise, in and to the real estate upon which the Bambū shoppe is located, and all buildings and other improvements related thereto. The purchase price for the assets to be transferred will be the fair market value of the assets, excluding any good will associated with the Marks, as mutually determined by Bambu and Franchisee, or if they are unable to mutually agree on the purchase price, by Bambu and Franchisee each choosing one independent appraiser who, in turn, choose a third independent appraiser, with the third appraiser's determination being binding upon the parties. The purchase price for the assets will be adjusted by setting off any amount then owing by Franchisee to Bambu, including any amounts paid by Bambu to cure Franchisee's defaults with third parties such as landlords (the decision to pay such cure amounts to be in the sole and absolute discretion of Bambu). Bambu and Franchisee shall each pay the fees and expenses of their chosen appraisers and they shall evenly split the
fees and expenses of the third appraiser. The following additional terms shall apply to Bambu's exercise of this option:
- a.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu may terminate the franchise agreement under certain conditions, some of which allow for a cure period. Specifically, if a franchisee breaches any provision of the agreement other than those listed in Section 19.1, Bambu will provide a 30-day written notice to allow the franchisee to cure the default. If the franchisee fails to cure the default within this period, the agreement will terminate without further notice. However, this is subject to any state laws to the contrary, where state law shall prevail.
Furthermore, if the breach is curable but cannot be reasonably cured within the initial 30-day period, and the franchisee has commenced and is making good faith efforts to cure the breach, Bambu will grant an additional reasonable period to cure the breach. In this case, the agreement will not automatically terminate without written notice from Bambu.
However, Bambu reserves the right to terminate the agreement immediately upon notice, without any opportunity to cure, if the franchisee ceases to operate the Bambū shoppe for three consecutive days, if no Bambū Certified Team Leaders are present at the shoppe for three consecutive days, or in cases of insolvency or assignments. Additionally, if a franchisee breaches any other agreement with Bambu, the franchisee must cure the breach during any applicable cure period provided in that other agreement. It is important to note that these termination terms are subject to applicable state and federal laws, which will govern the franchisee's rights regarding termination or expiration of the agreement if inconsistencies arise.