Under what conditions can the Bambu franchise agreement and/or 'Other Agreements' be terminated without additional notice or opportunity to cure?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
se rights. Upon the expiration of this Agreement, Franchisee 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has the right to terminate the Franchise Agreement and all associated rights immediately upon notice without providing an opportunity to cure under specific circumstances. These circumstances include abandonment of 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 will not be considered abandonment.
Another condition for immediate termination is the absence of Bambu Certified Team Leaders at the shop or their unavailability to be present upon Bambu's demand for three consecutive days. Additionally, if a franchisee defaults on any agreement with Bambu or its affiliates, and that agreement stipulates that an incurable or uncured default provides grounds for termination without additional notice, Bambu can terminate the Franchise Agreement immediately.
Furthermore, the cross-default and cross-termination provisions state that an incurable or uncured default under the Franchise Agreement or any 'Other Agreements' (agreements between the franchisee and/or its affiliates and Bambu and/or its affiliates) will allow Bambu to terminate the Franchise Agreement and/or any or all of the Other Agreements without additional notice or opportunity to cure. This means that a breach of any agreement with Bambu, if deemed incurable or not cured, can lead to immediate termination of the franchise and other related agreements.