factual

Are there any exceptions to the binding nature of the Bambu Franchise Agreement?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

y document executed in connection with the franchise.

ILLINOIS RIDER TO FRANCHISE AGREEMENT

    1. Illinois law governs the Franchise Agreement.
    1. In conformance with Section 4 of the Illinois Franchise Disclosure Act, any provision in a franchise agreement that designates jurisdiction and venue in a forum outside of the State of Illinois is void. However, a franchise agreement may provide for arbitration to take place outside of Illinois.
    1. Franchisees' rights upon termination and non-renewal are set forth in sections 19 and 20 of the Illinois Franchise Disclosure Act.
    1. In conformance with Section 41 of the Illinois Franchise Disclosure Act, any condition, stipulation, or provision purporting to bind any person acquiring any franchise to waive compliance with the Illinois Franchise Disclosure Act or any other law of Illinois is void.

  1. The following language is added at the end of Section 4.1:

All initial fees payable to Bambu and any of its affiliates shall be deferred until Bambu has fulfilled all of its initial obligations to Franchisee and Franchisee has commenced doing business pursuant to this Agreement. The Illinois Attorney General's Office imposed this deferral requirement due to Bambu's financial condition.

    1. No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise.
    1. See the FIRST page of this Attachment IV for your signature.

INDIANA RIDER TO FRANCHISE AGREEMENT

The following modifications are made to the Franchise Agreement only to the extent required by the Indiana Franchises Act, IND. CODE § 23-2-2.5, and the Indiana Deceptive Franchise Practices Act, IND. CODE § 23- 2-2.7:

  1. The following language is added to Section 3.2:

Indiana law prohibits Bambu from establishing a Bambu-owned outlet engaged in a substantially identical business within Franchisee's Protected Area.

  1. The following language is added to the end of Sections 17.2.f and 18.3.d:

Any release executed in connection herewith will not apply to any claims that may arise under the Indiana Franchise Disclosure Law and the Indiana Deceptive Franchise Practices Act.

    1. The scope of the Post-Termination Covenant Not to Compete in Section 21.2 is limited to the 10 mile radius of the Franchisee's former Franchised Location.
    1. The following language is added to the end of Section 23.5:

Notwithstanding the foregoing, any provision in this Agreement which limits in any manner whatsoever litigation brought for breach of this Agreement will be void to the extent that any such contractual provision violates the Indiana Deceptive Franchise Practices Law.

  1. The following paragraph is added to the end of Section 23.7:

Notwithstanding anything contained in this Agreement to the contrary, any and all claims and actions arising out of or relating to this Agreement, the relationship between Franchisee and Bambu, or Franchisee's operation of Franchisee's shoppe must be commenced within the time period specified in Indiana law.

  1. The following sentence is added at the end of Section 24.2:

Notwithstanding anything to the contrary in this provision, Franchisee does not waive any right under the Indiana statutes with regard to prior representations made by Bambu.

MARYLAND RIDER TO FRANCHISE AGREEMENT

  1. The following is added to the end of Section 4.1:

Based on the franchisor's financial condition, the Maryland Securities Commissioner has required a financial assurance.

Source: Item 23 — Receipts (FDD pages 52–209)

What This Means (2025 FDD)

According to the 2025 Bambu Franchise Disclosure Document, there are several exceptions and modifications to the standard franchise agreement, particularly for franchisees in Illinois and Minnesota. These exceptions primarily relate to legal rights, termination conditions, and the enforcement of certain clauses.

For Illinois franchisees, the Franchise Agreement is governed by Illinois law, and any clause designating jurisdiction and venue outside of Illinois is void, although arbitration outside the state is permitted. Additionally, Illinois franchisees' rights upon termination and non-renewal are protected under the Illinois Franchise Disclosure Act, and they cannot waive compliance with this act or any other Illinois law. The FDD specifies that initial fees payable to Bambu may be deferred until Bambu fulfills its initial obligations and the franchisee commences business, a requirement imposed by the Illinois Attorney General due to Bambu's financial condition. Furthermore, franchisees in Illinois cannot waive claims under state franchise law or disclaim reliance on statements made by Bambu.

For Minnesota franchisees, the FDD includes specific modifications to the franchise agreement. Any release executed will not apply to claims arising under the Minnesota Franchise Act. Minnesota law requires Bambu to provide 90 days' notice of termination (with 60 days to cure) and 180 days' notice for nonrenewal, except in certain specified cases. Additionally, Bambu is prohibited from restricting a franchisee from soliciting or hiring an employee of Bambu or another Bambu franchisee. A franchisee in Minnesota also cannot consent to Bambu obtaining injunctive relief, and a court will determine if a bond is required for such relief.

Bambu also retains the right to vary the franchise agreement and any standards, specifications, and techniques for a particular franchisee based on circumstances related to the franchisee, its area or territory, or any other condition. However, the franchisee is not entitled to require Bambu to grant a similar variation. The franchise agreement contains the entire agreement between the parties and supersedes any prior agreements. Franchisees acknowledge that they have not relied on any verbal representations or commitments made prior to the execution of the agreement, and Bambu will not be liable for any claims of negligent or fraudulent misrepresentation based on such verbal representations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.