In a dispute, who pays attorneys' fees and costs under the Bambu MUD Agreement?

According to Bambu's 2025 Franchise Disclosure Document, in the event of a dispute regarding the MUD Agreement, the non-prevailing party is responsible for covering all amounts due, damages, costs, and expenses incurred by the prevailing party. This includes reasonable attorneys' fees, which may arise from any legal action, arbitration, mediation, or other proceeding resulting from the dispute. Additionally, the non-prevailing party must also pay interest at the highest rate allowable by law, accruing from the date of default.

This clause ensures that the party who loses the dispute bears the financial burden of the legal process, compensating the prevailing party for their losses and legal expenses. This provision aims to discourage frivolous disputes and encourages parties to resolve conflicts amicably, knowing that initiating a legal battle and losing could result in significant financial liabilities.

It is important to note that this allocation of attorneys' fees and costs applies specifically to disputes arising under the MUD Agreement. The Franchise Agreement, referenced elsewhere in the FDD, may have different provisions regarding dispute resolution and allocation of fees. A prospective franchisee should carefully review both agreements to understand their rights and obligations in case of a disagreement with Bambu.