Can Bambu engage in activities not expressly prohibited under the terms of the Franchise Agreement?

According to the 2025 Bambu Franchise Disclosure Document, Bambu reserves the right to engage in activities not expressly prohibited by the Multi-Unit Development (MUD) Agreement. This means that unless the agreement specifically forbids an action, Bambu can pursue it.

This clause provides Bambu with flexibility in its business operations and strategic decisions. For a franchisee, this implies that Bambu could potentially undertake new initiatives or ventures that are not explicitly addressed in the franchise agreement, which may or may not directly benefit the franchisee. It is important to note that while Bambu has this right, franchisees are bound by the terms of the Franchise Agreement, which outlines their obligations and restrictions.

Furthermore, the FDD also states that Bambu has the right to use and license different proprietary marks or methods, establish drive-thru locations, and establish shoppes at Institutional Facilities. These rights, along with the ability to engage in activities not expressly prohibited, provide Bambu with significant control over the brand's development and expansion. Franchisees should be aware of these rights and how they might impact their own operations and territories.

Prospective franchisees should carefully review the Franchise Agreement and MUD Agreement to understand the full scope of Bambu's reserved rights and any potential implications for their franchise. It would be prudent to discuss these provisions with Bambu during the due diligence process to gain clarity on how these rights might be exercised and what protections, if any, are in place for franchisees.