What agreements contain the restrictive covenants applicable to Bambu franchisees and their affiliates?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
6.1. Restrictive Covenants. During the term and after the termination of this MUD Agreement or any Franchise Agreement signed in furtherance of this MUD Agreement, Franchisee and its Approved Affiliates and their officers, partners, directors, managers, agents or employees who have completed Bambu's training programs or had access to the Resource Center Materials, as described in the Franchise Agreement, or the beneficial owners of a five percent or greater interest in Franchisee or an Approved Affiliate and their respective immediate families, shall be subject to all restrictive covenants as set forth in the Franchise Agreement executed concurrently herewith, and in any nondisclosure and noncompetition agreements executed by Franchisee, its Approved Affiliates, or their employees, owners, managers, members, partners, officers, directors, agents or representatives, which covenants by this reference are incorporated herein.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the restrictive covenants applicable to franchisees and their approved affiliates are detailed within the Franchise Agreement and any nondisclosure and noncompetition agreements. These agreements are executed concurrently with the MUD (Multi-Unit Development) Agreement. The covenants included in these documents are incorporated by reference into the MUD Agreement, ensuring that franchisees and their affiliates adhere to the outlined restrictions.
These restrictive covenants apply not only to the franchisee but also to their approved affiliates, including their officers, partners, directors, managers, agents, or employees who have completed Bambu's training programs or had access to the Resource Center Materials. Additionally, the covenants extend to the beneficial owners of a five percent or greater interest in the franchisee or an approved affiliate, as well as their immediate families. This broad application ensures that a wide range of individuals associated with the franchise are bound by the non-compete and confidentiality obligations.
For a prospective franchisee, this means that they, their business partners, key employees, and even family members with significant ownership stakes must comply with the restrictive covenants outlined in the Franchise Agreement and any related non-disclosure or non-competition agreements. These covenants are designed to protect Bambu's business interests by preventing franchisees and their affiliates from engaging in activities that could harm the brand or unfairly compete with it, both during the term of the agreement and after its termination.