Who was the Virginia licensee that purchased a license from Bambu's predecessors in 2013?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Proceedings Against Only Our Predecessors
- Commonwealth of Virginia, ex rel., State Corporation Commission v. Bambu IP, LLC, Bambu Desserts & Drinks, Inc. and Kimhong Thi Nguyen (also known as Kelly Nguyen), Case no. SEC-2015-00028. In 2015, the Virginia State Corporation Commission opened an investigation into a complaint against our predecessors BIP and BDDI, and a principal of the predecessors, made by a licensee in Virginia who purchased a license from the predecessors in 2013. Without admitting or denying the Commission's allegations, the predecessors signed a Settlement Order with the Commission effective August 11, 2016, concluding the Commission's investigation into whether a violation of Section 13.1-560 and Section 13.1-563(4) of the Virginia Retail Franchising Act had occurred. Under the Settlement Order, we paid on behalf of the predecessors $80,000 in restitution to the Virginia licensee and $4,500 to the Commission for penalties and investigation costs. A Final Order was entered on October 25, 2016, dismissing the case. Our predecessors have reimbursed us for one-half of these amounts.
- Administrative Proceeding Before the Securities Commissioner of Maryland In the Matter of: Bambu Desserts and Drinks, Inc., Case no. 2015-0307. In 2015, the Securities Division of the Office of the Attorney General of Maryland ("Division") opened an investigation into the sale of an option by BDDI, our predecessor, to the same Virginia licensee described in paragraph 1 above for a location that may have been in Maryland. Without admitting or denying the Division's allegations, the predecessor signed a Consent Order with the Division effective August 15, 2016. Under the Consent Order, we paid on behalf of the predecessor $5,000 in restitution to the Virginia licensee. The $5,000 was included in the amount paid under the Virginia Settlement Order described in paragraph 1 above. Our predecessors have reimbursed us for one-half of these amounts.
Other than these actions, no litigation is required to be disclosed in this Item.
Source: Item 3 — Litigation (FDD pages 12–13)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the identity of the Virginia licensee who purchased a license from Bambu's predecessors in 2013 is not disclosed. However, the document mentions legal proceedings involving this licensee. In 2015, the Virginia State Corporation Commission investigated a complaint by this licensee against Bambu's predecessors, Bambu IP, LLC, Bambu Desserts & Drinks, Inc., and Kimhong Thi Nguyen (also known as Kelly Nguyen). The investigation concluded with a Settlement Order in 2016, where Bambu paid $80,000 in restitution to the Virginia licensee and $4,500 to the Commission for penalties and investigation costs.
Additionally, in 2015, the Securities Division of the Office of the Attorney General of Maryland opened an investigation into the sale of an option by Bambu's predecessor, BDDI, to the same Virginia licensee for a location that may have been in Maryland. This investigation also resulted in a Consent Order in 2016, with Bambu paying $5,000 in restitution to the Virginia licensee, which was included in the amount paid under the Virginia Settlement Order.
While the FDD provides details about the legal issues and financial settlements involving this Virginia licensee, it does not explicitly name the licensee. A prospective franchisee might want to ask Bambu for more details about these past legal issues and the specific circumstances surrounding the complaint from the Virginia licensee to better understand the brand's history and potential risks.