What documents constitute the entire agreement between the parties in the Bambu MUD Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ATTACHMENT A TO BAMBU FRANCHISING LLC MULTI-UNIT DEVELOPMENT AGREEMENT
ADDENDUM TO MULTI-UNIT DEVELOPMENT AGREEMENT
This is an Addendum ("Addendum") to the Multi-Unit Development Agreement (the "MUD Agreement") by and between Bambu Franchising LLC, hereinafter "Bambu" and the undersigned franchisee, hereinafter "Franchisee." This Addendum modifies the terms of the MUD Agreement and in the event of a conflict in terms between the MUD Agreement and this Addendum, the terms of this Addendum shall be controlling.
The parties agree as follows:
- 3.2. Subsequent Franchise Agreements. The parties agree that a separate Franchise Agreement shall be executed by the parties to this MUD Agreement for each shoppe to be developed under this MUD Agreement. Franchisee will exercise its right for development of each shoppe by giving Bambu written notice of its intention to develop such shoppe at least 90 days in advance of the deadline set forth in the Development Schedule for executing each applicable Franchise Agreement. The Franchise Agreement for the second and subsequent shoppes will be executed by the deadline set forth in the Development Schedule. Franchisee's failure to execute any additional Franchise Agreements or its default in any term of such Franchise Agreements may, at the option of Bambu, be deemed a default under this MUD Agreement and shall entitle Bambu to terminate this MUD Agreement as further provided in Article 4 below. Each Franchise Agreement to be executed by Franchisee for each shoppe to
be developed hereunder shall be in the form of Franchise Agreement then generally being offered to franchisees by Bambu, which may contain terms substantially different from the terms of the initial Franchise Agreement executed hereunder. Notwithstanding the foregoing, Bambu agrees that it will not charge an initial franchise fee to Franchisee which is greater than the amounts set forth in Section 2.1(b) above. Franchisee acknowledges that Bambu has the right, however, to charge then current rates for royalty fees and all other fees, and for purchases of products and services offered to Franchisee, in accordance with Bambu's then-current franchise agreement.
- 1.3.
Franchise Agreement First Shoppe Developed.
The parties acknowledge that the Bambū Franchise Agreement governing the operation of Franchisee's first Bambū shoppe to be opened hereunder is being executed concurrently with this MUD Agreement.
Franchisee agrees to comply with the terms and conditions of the Franchise Agreement as a part of its obligations hereunder and acknowledges that failure to execute and comply with such Franchise Agreement is a breach of this MUD Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
Based on the 2025 Bambu Franchise Disclosure Document, the MUD (Multi-Unit Development) Agreement between Bambu Franchising LLC and the franchisee includes several key components. These are the MUD Agreement itself, any addenda to the MUD Agreement, and the Franchise Agreement executed concurrently with the MUD Agreement.
The addendum modifies the terms of the MUD Agreement, and in case of conflicting terms, the addendum's terms take precedence. Additionally, a separate Franchise Agreement is required for each shoppe developed under the MUD Agreement. The terms of the Franchise Agreement executed concurrently with the MUD Agreement are part of the franchisee's obligations, and failure to comply with it constitutes a breach of the MUD Agreement.
It is important to note that subsequent Franchise Agreements for additional shoppes may contain terms substantially different from the initial Franchise Agreement. However, Bambu agrees not to charge an initial franchise fee greater than the amount specified in the MUD Agreement. Franchisees should be aware that Bambu retains the right to charge then-current rates for royalty fees and other fees, as well as for products and services, according to its current franchise agreement.