Under what circumstances can Bambu terminate the franchise agreement immediately without notice or opportunity to cure related to health and safety?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
hall evaluate the proposed transferee for approval based on the same criteria currently being used to assess new and renewing franchisees of Bambu.
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- Section 19.1.l is deleted in its entirety and the following provision is substituted in its place:
- l. Health or Safety Problem. After receiving notice of the same from Bambu, Franchisee fails, for a period of 10 days, to comply with any health, safety, building, or labor law, regulation or ordinance, any order of any governmental agency, or any health or safety standard of Bambu, including but not limited to, failing to comply with the terms and conditions of any mandatory product recall;
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 immediately, without notice or an opportunity to cure, if they reasonably determine that the franchisee's continued operation of the Bambu shop will result in an imminent danger to public health or safety. This is related to the franchisee failing to comply with any health, safety, building, or labor law, regulation, or ordinance, any order of any governmental agency, or any health or safety standard of Bambu, including but not limited to, failing to comply with the terms and conditions of any mandatory product recall after receiving notice from Bambu.
This means that if a Bambu franchisee's actions or inactions pose an immediate threat to public well-being, Bambu has the right to terminate the agreement to protect the brand and the public. This is a fairly standard clause in franchise agreements, as franchisors need to be able to act quickly to address serious health and safety issues.
It is important to note that Bambu must reasonably determine that the franchisee's continued operation will result in an imminent danger. This suggests that there needs to be a clear and present risk, not just a potential or hypothetical one. The franchisee would not have an opportunity to correct the issue before the termination takes effect.