Under what condition can Bambu immediately terminate the franchise agreement without notice or opportunity to cure?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ranchisee shall comply with the provisions of Section 19.4 below.
19. DEFAULT AND TERMINATION
- 19.1 Termination by Bambu Effective Upon Notice. Bambu shall have the right, at its option, to terminate this Agreement and all rights granted Franchisee hereunder, without affording Franchisee any opportunity to cure any default (except where expressly indicated and subject to any state laws to the contrary, where state law shall prevail), effective upon notice to Franchisee upon the occurrence of any of the following events:
- a. Abandonment. If Franchisee ceases to operate the Bambū shoppe or otherwise abandons the Bambū shoppe for a period of three consecutive days, or any shorter period that indicates an intent by Franchisee to discontinue operation of the Bambū shoppe. Franchisee's suspension or termination of the shoppe's operation due to fire, flood, earthquake, epidemic or pandemic, or force majeure shall not be deemed abandonment.
- b. No Bambū Certified Team Leaders Present. No Bambū Certified Team Leaders are present at, or are available upon Bambu's demand to be present at, the Bambū shoppe for three consecutive days.
- c. Insolvency; Assignments. If Franchisee becomes insolvent or is adjudicated a bankrupt; or if any action is taken by Franchisee, or by others against Franchisee under any insolvency, bankruptcy or reorganization act, (this provision may not be enforceable under federal bankruptcy law, 11 U.S.C. §§ 101 et seq.); or if Franchisee makes an assignment for the benefit of creditors or a receiver is appointed by Franchisee.
- d. Unsatisfied Judgments; Levy; Foreclosure. If any material judgment (or several judgments which in the aggregate are material) is obtained against Franchisee and remains unsatisfied or of record for 30 days or longer (unless a supersedeas or other appeal bond has been filed); or if execution is levied against Franchisee's business or any of the property used in the operation of the Bambū shoppe and is not discharged within five days; or if the real or personal property of Franchisee's business shall be sold after levy thereupon by any sheriff, marshal or constable.
- e. Criminal Conviction.
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 opportunity to cure under specific circumstances. These circumstances include if the franchisee abandons the Bambu shop for three consecutive days or any shorter period indicating an intent to discontinue operations. However, a suspension or termination of operations due to events like fire, flood, earthquake, epidemic, pandemic, or force majeure is not considered abandonment.
Another condition for immediate termination is if no Bambu Certified Team Leaders are present at, or available upon Bambu's demand to be present at, the Bambu shop for three consecutive days. This highlights the importance of maintaining certified staff to avoid immediate termination.
Bambu can also immediately terminate the agreement if the franchisee becomes insolvent or makes assignments. Additionally, immediate termination is possible if the franchisee or its affiliates file a non-compliant legal action against Bambu or its affiliates that is not in accordance with the dispute resolution terms outlined in the agreement, and fails to dismiss the action within seven days after notification from Bambu.
Furthermore, Bambu can immediately terminate the agreement if the franchisee breaches the terms of any other agreement between Bambu and the franchisee without curing the breach during any applicable cure period provided in the other agreement. Finally, Bambu can terminate immediately if any guaranty of the agreement fails to be a continuing obligation fully enforceable against the guarantor, or if there is any inadequacy of the guaranty or guarantor and the guarantor is unable to provide adequate assurances as required by Bambu.