What are 'Existing Shoppes' in the context of a Bambu MUD Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding the foregoing, there may be existing Franchise Agreements in effect as of the date of this MUD Agreement under which Bambu has granted rights to third parties to operate Bambū shoppes in the Development Area (the "Existing Shoppes"). Franchisee agrees and acknowledges that the Franchise Agreements for such Existing Shoppes may remain in effect, and nothing in this MUD Agreement shall prevent, prohibit, or restrict the operations of such Existing Shoppes. Bambu may renew the Franchise Agreements or enter into successor Franchise Agreements for such Existing Shoppes.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, "Existing Shoppes" refer to pre-existing franchise agreements within a Development Area at the time a new MUD (Multi-Unit Development) Agreement is signed. Specifically, these are Bambu locations that were already operating under valid franchise agreements before the new franchisee acquired the development rights for that area.
Bambu acknowledges that these pre-existing agreements remain in effect, and the new MUD Agreement does not override or restrict their operations. Bambu retains the right to renew or create successor agreements for these Existing Shoppes, meaning the new area developer must coexist with these established locations. This ensures that existing franchisees are not negatively impacted by the introduction of a new area developer.
For a prospective Bambu franchisee entering into a MUD Agreement, it's crucial to understand the implications of Existing Shoppes within their Development Area. The number and performance of these Existing Shoppes could influence the new franchisee's development strategy and revenue projections. The franchisee should clarify the locations, performance metrics, and remaining terms of the franchise agreements for all Existing Shoppes to fully assess the market potential and competitive landscape within their designated area.