Under what circumstances can Bambu terminate the franchise agreement if the franchisee breaches another agreement with Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu can terminate the franchise agreement if the franchisee breaches the terms of any other agreement between them. However, this termination is not immediate. Bambu will only terminate the agreement if the franchisee fails to correct the breach within the cure period that is specified in the other agreement.
This provision means that if a franchisee has multiple agreements with Bambu (for example, a development agreement in addition to the franchise agreement), a breach of any of those agreements could lead to the termination of the franchise agreement. The franchisee's ability to maintain their Bambu franchise is thus dependent on fulfilling all obligations across all agreements with the franchisor.
It is important for prospective franchisees to carefully review all agreements they enter into with Bambu and understand the potential consequences of breaching any of them. Franchisees should pay close attention to the cure periods outlined in each agreement, as failure to cure a breach within the specified timeframe can result in the termination of their franchise.