Under what conditions can the Bambu franchisor terminate the Multi-Unit Development Agreement with cause?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| | Termination by franchisor with cause | Sections 19.1 and 19.2 of FA; Sections 4.3 and 4.4 of MUDA | We can terminate only if you commit any one of several listed violations. | | (g) | "Cause" defined-curable defaults | Sections 19.1 and 19.2 of FA; Section 4.3 of MUDA | For the Franchise Agreement: 48 hours for misuse of the Marks, purchases from unapproved suppliers, or other failures to comply with FRC Materials or other standards, 5 days for monetary defaults, 7 days for filing of a legal action in violation of the dispute resolution terms in the Franchise Agreement, and generally 30 days for other defaults. For the Development Agreement: 30 days' notice for breach. If we provide you with a notice of default, we and our affiliates may suspend services to you until each default is cured. |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the franchisor can terminate the Multi-Unit Development Agreement (MUDA) with cause if the franchisee commits certain violations. The specific violations that constitute cause for termination are detailed in Sections 4.3 and 4.4 of the MUDA.
For breaches of the MUDA, Bambu requires a 30-day notice to cure the breach. If the franchisee fails to correct the breach within this period, Bambu can then proceed with termination. Additionally, if Bambu provides a notice of default, they and their affiliates may suspend services to the franchisee until the default is resolved.
It is important for prospective Bambu multi-unit developers to carefully review Sections 4.3 and 4.4 of the Multi-Unit Development Agreement to fully understand the specific actions or omissions that could lead to a termination of the agreement. Understanding these conditions is crucial for maintaining a successful and compliant franchise relationship with Bambu.