Under the Bambu franchise agreement, if the franchisee defaults on any agreement with Bambu or its affiliates, what is the consequence?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ting from any of these causes will extend performance by Bambu accordingly or excuse performance by Bambu in whole or in part, as may be necessary.
24.16 Cross-Default and Cross Termination Provisions.
- a. A default by Franchisee under this Agreement will be deemed a default of all agreements between Franchisee and/or any company(ies) affiliated with Franchisee, on the one hand, and Bambu and/or any company(ies) affiliated with Bambu, on the other hand (the "Other Agreements"). A default by Franchisee and/or any company(ies) affiliated with Franchisee under any of the Other Agreements will be deemed a default under this Agreement. A default by any guarantor(s) of this Agreement or of any of the Other Agreements will be deemed a default of this Agreement.
- b. If this Agreement is terminated as a result of a default by Franchisee, Bambu may, at its option, elect to terminate any or all of the Other Agreements. If any of the Other Agreements is terminated as a result of a default by Franchisee and/or any company(ies) affiliated with Franchisee, Bambu may, at its option, elect to terminate this Agreement. It is agreed that an incurable or uncured default under this Agreement or any of the Other Agreements will be grounds for termination of this Agreement and/or any and all of the Other Agreements without additional notice or opportunity to cure.
- 24.17 Charges and Taxes.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu Franchise Disclosure Document, a default by a franchisee under the Franchise Agreement is considered a default of all agreements between the franchisee and/or any companies affiliated with the franchisee, on one hand, and Bambu and/or any companies affiliated with Bambu, on the other hand. A default by any guarantor of the Franchise Agreement or other agreements will also be considered a default of the Franchise Agreement.
If the Franchise Agreement is terminated due to a franchisee's default, Bambu has the option to terminate any or all other agreements. Similarly, if any other agreements are terminated because of a default by the franchisee and/or their affiliated companies, Bambu can choose to terminate the Franchise Agreement. An incurable or uncured default under the Franchise Agreement or any other agreements can lead to the termination of the Franchise Agreement and/or any and all other agreements without additional notice or an opportunity to cure the default.
Additionally, if a Bambu franchisee breaches the terms of any other agreement between Bambu and the franchisee, and fails to correct the breach within the specified cure period in that other agreement, Bambu has the right to terminate the Franchise Agreement. This cross-default provision highlights the interconnectedness of all agreements a franchisee has with Bambu and its affiliates, meaning a default in one area can have significant repercussions for the entire franchise relationship.