What is the Development Schedule in the Bambu MUD Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If you qualify, we may grant you the right to enter into a Multi-Unit Development Agreement ("MUD Agreement") to develop an agreed upon number of Bambū shoppes within a specific geographic territory according to a development schedule ("Development Schedule"). The form of MUD Agreement you will sign is attached as Exhibit B to this Disclosure Document. Your obligation to develop and operate franchises may be satisfied by you or by an entity owned by you or your owners ("Approved Affiliate"). For each Bambū shoppe developed under the MUD Agreement, you will sign a separate franchise agreement, which may be different than the form of Franchise Agreement attached to this Disclosure Document.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–11)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee qualifies, they may be granted the right to enter into a Multi-Unit Development Agreement (MUD Agreement). This agreement allows the franchisee to develop an agreed-upon number of Bambu shoppes within a specific geographic territory, following a development schedule. The specific form of the MUD Agreement is included as Exhibit B to the Disclosure Document.
Under the MUD Agreement, the franchisee is obligated to develop and operate the franchises, and this obligation can be fulfilled either by the franchisee directly or through an entity they own or control, referred to as an 'Approved Affiliate.' For each Bambu shoppe developed under the MUD Agreement, the franchisee must sign a separate franchise agreement. It's important to note that this individual franchise agreement may differ from the standard Franchise Agreement included as Exhibit A to the Disclosure Document.
While the FDD mentions the existence of a 'Development Schedule' within the MUD Agreement, it does not provide any further details regarding the specific timelines, milestones, or requirements of this schedule. A prospective franchisee should carefully review Exhibit B and discuss the specifics of the Development Schedule with Bambu to fully understand their obligations and timelines for opening multiple units.