Under what circumstances will Bambu not be liable to the franchisee or deemed in breach of the Bambu Franchise Agreement due to failure to perform obligations?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 24.15 Force Majeure. Bambu will not be liable to Franchisee, nor will Bambu be deemed to be in breach of this Agreement, if it exercises best efforts to perform its obligations as may be due to Franchisee hereunder, and its failure to perform its obligations results from: (1) transportation shortages, inadequate supply of labor, material or energy, or voluntarily foregoing the right to acquire or use any of the foregoing in order to accommodate or comply with the orders, requests, regulations, recommendations or instruments of any federal, state, provincial, or municipal government or any department or agency thereof; (2) compliance with any law, ruling, order, regulation, requirement or instruction of any federal, state, provincial, or municipal government or any department or agency thereof; (3) viral or bacterial epidemic, pandemic, or other public health crisis; (4) acts of God; or (5) fires, strikes, terrorism, embargoes, war or riot. Any delay resulting from any of these causes will extend performance by Bambu accordingly or excuse performance by Bambu in whole or in part, as may be necessary.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu will not be held liable to the franchisee or considered in breach of the Franchise Agreement if its failure to perform obligations is due to specific circumstances. These circumstances include transportation shortages, inadequate supply of labor, material, or energy. This also applies if Bambu voluntarily foregoes the right to acquire or use any of the aforementioned resources to comply with governmental orders, requests, regulations, recommendations, or instruments from any federal, state, provincial, or municipal government or its agencies.
Further, Bambu is not liable if non-performance results from compliance with any law, ruling, order, regulation, requirement, or instruction from any federal, state, provincial, or municipal government or its agencies. Other circumstances absolving Bambu of liability include viral or bacterial epidemics, pandemics, other public health crises, acts of God, fires, strikes, terrorism, embargoes, war, or riots.
Any delay resulting from these causes will extend Bambu's performance accordingly or excuse it entirely or partially, as necessary. This clause, known as "Force Majeure," is a common provision in franchise agreements designed to protect the franchisor from unforeseen events that are beyond their control. It is important for a prospective franchisee to understand these conditions, as they outline situations where Bambu's obligations may be suspended or excused, potentially impacting the franchisee's business operations.