What agreement governs the development and operation of a Bambu shoppe?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.3.
Franchise Agreement First Shoppe Developed.
The parties acknowledge that the Bambū Franchise Agreement governing the operation of Franchisee's first Bambū shoppe to be opened hereunder is being executed concurrently with this MUD Agreement.
Franchisee agrees to comply with the terms and conditions of the Franchise Agreement as a part of its obligations hereunder and acknowledges that failure to execute and comply with such Franchise Agreement is a breach of this MUD Agreement.
- 3.2. Subsequent Franchise Agreements. The parties agree that a separate Franchise Agreement shall be executed by the parties to this MUD Agreement for each shoppe to be developed under this MUD Agreement. Franchisee will exercise its right for development of each shoppe by giving Bambu written notice of its intention to develop such shoppe at least 90 days in advance of the deadline set forth in the Development Schedule for executing each applicable Franchise Agreement. The Franchise Agreement for the second and subsequent shoppes will be executed by the deadline set forth in the Development Schedule. Franchisee's failure to execute any additional Franchise Agreements or its default in any term of such Franchise Agreements may, at the option of Bambu, be deemed a default under this MUD Agreement and shall entitle Bambu to terminate this MUD Agreement as further provided in Article 4 below. Each Franchise Agreement to be executed by Franchisee for each shoppe to
be developed hereunder shall be in the form of Franchise Agreement then generally being offered to franchisees by Bambu, which may contain terms substantially different from the terms of the initial Franchise Agreement executed hereunder. Notwithstanding the foregoing, Bambu agrees that it will not charge an initial franchise fee to Franchisee which is greater than the amounts set forth in Section 2.1(b) above. Franchisee acknowledges that Bambu has the right, however, to charge then current rates for royalty fees and all other fees, and for purchases of products and services offered to Franchisee, in accordance with Bambu's then-current franchise agreement.
2.1 Grant of Franchise. Bambu grants to Franchisee, and Franchisee accepts from Bambu, the right to use the Marks and Bambū system in connection with the establishment and operation of one Bambū shoppe, at the location described in Article 3 of this Agreement. Franchisee agrees to use the Marks and Bambū system, as they may be changed, improved, and further developed by Bambu from time to time, only in accordance with the terms and conditions of this Agreement.
2.2 Scope of Franchise Operations. Franchisee shall at all times comply with Franchisee's obligations hereunder and shall continuously use best efforts to promote and operate the Bambū shoppe. Franchisee shall utilize the Marks and Bambū system to operate all aspects of the business franchised hereunder in accordance with the methods and systems developed and prescribed from time to time by Bambu, all of which are a part of the Bambū system. Franchisee's Bambū shoppe shall offer all products and services as Bambu designates and shall be restricted from offering or selling any products and services not previously approved by Bambu in writing. If Franchisee is a corporation, partnership, limited liability company or other entity, Franchisee shall not engage in any business other than the operation of a Bambū shoppe.
5.7 Permits and Licenses.
Franchisee agrees to obtain all permits and certifications as may be required for the lawful construction and operation of the Bambū shoppe, together with all certifications from government authorities having jurisdiction over the site that all requirements for construction and operation have been met, including without limitation, zoning, access, sign, health, safety requirements, building and
other required construction permits, licenses to do business and fictitious name registrations, sales tax permits, health and sanitation permits and ratings and fire clearances.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the operation of the first Bambu shoppe is governed by a Franchise Agreement executed concurrently with a MUD (Multi-Unit Development) Agreement. The franchisee must adhere to the terms and conditions outlined in the Franchise Agreement as part of their obligations under the MUD Agreement. Failure to comply with the Franchise Agreement constitutes a breach of the MUD Agreement. For subsequent shoppes, a separate Franchise Agreement is required for each location developed under the MUD Agreement. Franchisees must notify Bambu in writing at least 90 days before the deadline for executing each Franchise Agreement, as specified in the Development Schedule. These subsequent Franchise Agreements will be in the form then generally offered by Bambu and may contain substantially different terms from the initial Franchise Agreement.
While the initial franchise fee for subsequent shoppes will not exceed the amount stated in Section 2.1(b), Bambu retains the right to charge then-current rates for royalty fees, other fees, and purchases of products and services, as per the current franchise agreement. The franchisee is responsible for securing all necessary financing, selecting and building out the location, obtaining insurance, acquiring licenses and permits, purchasing and installing equipment, and completing the training program within one year from the agreement date, unless otherwise agreed in writing.
Bambu grants the franchisee the right to use its marks and system to establish and operate one Bambu shoppe at a specific location, as detailed in the agreement. The franchisee must continuously promote and operate the shoppe in accordance with Bambu's prescribed methods and systems, offering only approved products and services. If the franchisee is a business entity, it must focus solely on operating the Bambu shoppe. The franchisee is responsible for obtaining all necessary permits and certifications for the lawful construction and operation of the shoppe, ensuring compliance with all applicable requirements.