Under what condition are Costs and Attorneys' Fees payable to Bambu?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
epartment. See Item 11. |
| Column 1 | Column 2 | Column 3 | Column 4 |
|---|---|---|---|
| Type of Fee 1 | Amount | Due Date | Remarks |
| Other at Shoppe Location Trainings and Certifications 1, 2 | Our then current published rates which are currently $900 per day plus travel related expenses | As incurred | Payable only if you request or we require additional training specific to you. |
| Costs and Attorneys' Fees 2 | Will vary depending on nature of your default or the claim brought | As incurred | Payable if we are successful in a legal action. |
| Indemnification Under Franchise Agreement 2 | Will vary depending on nature of the claim against us | As incurred | You have to reimburse us if we are held liable for claims resulting from your Bambū shoppe operations. |
| Insurance Premiums 2, 5 | Will vary depending on your location, policy limits, and insurer | As incurred | If you do not pay your premiums, although we do not have to, we can pay them for you and you must reimburse us. |
| Cost of Product Testing | Hourly rate of $150 per person plus the cost of supplies and equipment | As incurred | You must reimburse us for all reasonable costs we incur in investigating and determining whether any previously unapproved products, programs, or suppliers you desire to use meet our standards and specifications. |
| and Supplier | |||
| Approval 1 , 2 | |||
| Relocation Fee 1, 2 | $15,000 | When we approve the new location lease | Payable only if you move your current location during the term of the Franchise Agreement. The fee provides for similar new Bambū shoppe operations support, including two site visits and three days of additional training support as determined by us. If you clos |
Source: Item 6 — OTHER FEES (FDD pages 14–18)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees may be required to cover costs and attorneys' fees. These fees, which vary depending on the nature of the default or claim, are incurred if Bambu is successful in a legal action against the franchisee. The due date for these fees is listed as "as incurred."
This means that if a franchisee breaches the franchise agreement or is involved in a dispute that leads to legal action where Bambu prevails, the franchisee will be responsible for Bambu's legal costs. This could include expenses related to attorneys, court fees, and other associated costs. The amount will depend on the specifics of the legal situation and the extent of the fees incurred by Bambu.
For a prospective Bambu franchisee, this highlights the importance of adhering to the franchise agreement and resolving disputes amicably to avoid potential legal actions. Understanding the terms of the agreement and maintaining open communication with Bambu can help minimize the risk of incurring these potentially significant costs. Franchisees should also ensure they have adequate legal representation and insurance coverage to protect themselves in case of legal disputes.