Is a Bambu franchisee permitted to grant a subfranchise under the MUD Agreement?

According to Bambu's 2025 Franchise Disclosure Document, a franchisee is explicitly prohibited from granting subfranchises under the MUD (Multi-Unit Development) Agreement. This restriction is clearly stated within the terms governing the agreement, meaning a franchisee cannot authorize another party to operate a Bambu location using the rights initially granted to them.

This prohibition is a standard practice in franchising, as franchisors like Bambu typically want to maintain direct control over who operates locations under their brand. By preventing subfranchising, Bambu ensures that all operators meet their standards and that the brand image remains consistent. This control extends to the selection and training of franchisees, ensuring that each location adheres to the established operational model.

For a prospective Bambu franchisee, this means they must be prepared to directly manage and operate the locations they develop. They cannot rely on passing the responsibility to another party through a subfranchise agreement. This requirement underscores the importance of the franchisee's active involvement in the business and their commitment to upholding Bambu's standards. The franchisee's engagement is crucial for maintaining the quality and consistency of the brand across all locations developed under the MUD Agreement.

Furthermore, the MUD Agreement specifies that the franchisee's rights are personal and cannot be transferred or assigned without Bambu's prior written consent. This condition reinforces Bambu's control over the franchise network and ensures that any potential transfer meets their approval. The prohibition of subfranchising, combined with the restrictions on assignment, highlights the importance of the initial franchisee selection process for Bambu.