In case of conflict, which agreement controls between the Bambu MUD Agreement and the Franchise Agreement?

According to Bambu's 2025 Franchise Disclosure Document, the terms of the Multi-Unit Development (MUD) Agreement take precedence over the Franchise Agreement in the event of a conflict. This is explicitly stated in Section 8.9, ensuring that the MUD Agreement's stipulations are controlling. This clause is designed to provide clarity and legal certainty for both Bambu and the franchisee regarding their respective rights and obligations, especially concerning the development of multiple franchise locations.

This controlling terms provision is a crucial aspect for franchisees entering into a multi-unit development arrangement with Bambu. It ensures that the specific terms negotiated within the MUD Agreement, which often address the unique aspects of developing multiple units, are upheld. This can cover aspects such as development schedules, territory rights, and other specific obligations related to the multi-unit development plan.

For a prospective Bambu franchisee, understanding this clause is essential. It means that if there's a discrepancy between the standard Franchise Agreement and the MUD Agreement, the MUD Agreement will govern. This offers a level of protection and assurance that the development terms agreed upon will be honored, which is particularly important when making substantial investments in developing multiple franchise locations. Franchisees should carefully review both agreements to understand the full scope of their rights and obligations, paying close attention to any potential conflicts and how they are resolved by this controlling terms provision.