Under what conditions can a Bambu franchisee bring an action in Washington?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
do U.S.A., and each waive any objection either may have to the personal jurisdiction of or venue in the state and federal courts of Colorado U.S.A. Notwithstanding the foregoing, any legal proceeding by Bambu or any Bambu Affiliate not subject to mandatory arbitration may be brought in any court of competent jurisdiction in the country, state, province, or other geographic area in which Franchisee's shoppe is located or in which Franchisee or any Franchisee Affiliate resides or owns assets. IF A CLAIM MAY BE BROUGHT IN COURT, THEN BAMBU, THE BAMBU AFFILIATES, FRANCHISEE AND THE FRANCHISEE AFFILIATES EACH WAIVE THEIR RIGHTS TO A TRIAL BY JURY.
- 23.6 No Punitive or Consequential Damages. Except for Franchisee's obligation to indemnify Bambu under Section 20.3 above, as specifically permitted elsewhere in this Agreement, or as may be required by statute, neither Bambu or any of the Bambu Affiliates, on the one side, nor Franchisee or any of the Franchisee Affiliates, on the other side, shall be liable to the other for punitive, consequential, or other damages not measured by the other party's actual damages, in any action between the parties.
- 23.7 Limitation on Actions. Notwithstanding anything contained in this Agreement to the contrary, any and all claims and actions arising out of or relating to this Agreement, the relationship between Franchisee and Bambu, or Franchisee's operation of the Bambū shoppe shall be commenced within one year from the occurrence of the facts giving rise to the claim or action.
- 23.8 No Recourse.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee may bring a legal proceeding against Bambu or its affiliates in a court of competent jurisdiction in the state where the franchisee's shoppe is located, or where the franchisee resides or owns assets. However, this is only applicable for legal proceedings not subject to mandatory arbitration.
Bambu includes a Washington Rider to the Franchise Agreement, acknowledging the Securities Administrator of the State of Washington's determination that Bambu's financial condition may impact its ability to fulfill obligations to the franchisee during the establishment and opening of the Bambū shoppe. To address this, Bambu defers the payment of all initial fees until it has completed its initial obligations and the franchisee's Bambū shoppe opens.
It's important to note that any claims or actions arising out of the Franchise Agreement, the relationship between the franchisee and Bambu, or the franchisee's operation of the Bambū shoppe must be commenced within one year from the occurrence of the facts giving rise to the claim or action. This one-year limitation on actions is a notable restriction for franchisees to be aware of.
Furthermore, if a claim may be brought in court, both Bambu and the franchisee waive their rights to a trial by jury. This means that any legal disputes would be resolved by a judge rather than a jury. Franchisees should consult with a legal professional to fully understand the implications of these provisions and how they may affect their rights and obligations under the Franchise Agreement.