Can a condition or covenant in the Bambu MUD Agreement be waived?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.4.
No Waiver.
No waiver of any condition or covenant contained in this MUD Agreement or failure to exercise a right or remedy by any party hereto shall be considered to imply or constitute a further waiver of the same or any other condition, covenant, right or remedy.
- 8.5.
Modification.
This MUD Agreement may be modified only upon execution of a written agreement between the parties.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu's MUD (Multi-Unit Development) Agreement contains a specific clause addressing waivers. It states that if either party fails to exercise a right or remedy, or waives any condition or covenant within the agreement, this act should not be interpreted as a broader or ongoing waiver of that specific condition, covenant, right, or remedy, or any other aspect of the agreement. This means that any waiver is a one-time event and does not set a precedent for future situations.
This "no waiver" clause is designed to protect Bambu's interests by ensuring that the company's failure to enforce a specific term in one instance does not prevent them from enforcing it in the future. Similarly, it protects the franchisee by ensuring that a one-time allowance does not obligate them to accept similar allowances going forward. This type of clause is relatively standard in franchise agreements, as it provides clarity and prevents either party from claiming that past leniency alters the terms of the agreement.
Furthermore, the Bambu MUD Agreement specifies that any modifications to the agreement must be made in writing and signed by both parties. This requirement reinforces the importance of formal documentation for any changes to the original terms. This ensures that there is a clear record of any agreed-upon modifications, preventing misunderstandings or disputes based on verbal agreements or implied waivers. This clause works in conjunction with the no waiver clause to ensure the MUD agreement remains intact unless formally modified.