Does the Franchisee have to comply with the terms and conditions of the Franchise Agreement as part of its obligations under the Bambu MUD Agreement?

According to the 2025 Bambu Franchise Disclosure Document, a franchisee must comply with the terms and conditions outlined in the Franchise Agreement as part of their obligations under the MUD (Multi-Unit Development) Agreement. The FDD specifies that failure to comply with the Franchise Agreement constitutes a breach of the MUD Agreement. This means that the franchisee's adherence to the Franchise Agreement is directly tied to their standing under the MUD Agreement.

This requirement ensures that Bambu franchisees operate consistently and in accordance with the brand's standards, even during the development phase covered by the MUD Agreement. It also provides Bambu with recourse if a franchisee fails to meet the obligations set forth in the Franchise Agreement, allowing Bambu to take action under the MUD Agreement.

For a prospective Bambu franchisee, this means understanding and adhering to the Franchise Agreement is crucial from the outset. Non-compliance can have significant consequences, potentially leading to a breach of the MUD Agreement and jeopardizing the franchisee's development rights. Franchisees should carefully review both the MUD Agreement and the Franchise Agreement to fully understand their obligations and ensure they can meet them.