Is the Franchisee prohibited from engaging in activities not expressly prohibited by the Bambu MUD Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) to engage in any other activities not expressly prohibited by this MUD Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are permitted to engage in activities not expressly prohibited by the Multi-Unit Development (MUD) Agreement. Bambu explicitly reserves the right to engage in activities not expressly prohibited within the MUD Agreement. This clause provides a degree of flexibility for the franchisee, allowing them to pursue business activities that are not specifically restricted by the agreement.
This reservation of rights by Bambu does not mean franchisees have unlimited freedom. The MUD Agreement and the Franchise Agreement, executed concurrently, outline specific obligations and restrictions. Franchisees must carefully review these documents to understand what activities are permitted and prohibited. Any activity that falls outside these explicitly prohibited areas is generally permissible.
This clause is fairly common in franchise agreements, as it allows the franchisor to maintain control over the brand and system while still allowing franchisees some flexibility in their operations. However, franchisees should seek clarification from Bambu regarding any activities they are considering that may potentially conflict with the MUD Agreement to avoid any misunderstandings or breaches of contract.