If a franchisee enters into a Multi-Unit Development Agreement with Bambu, will the franchise agreement be the same as the one attached to the Disclosure Document?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
If you qualify, we may grant you the right to enter into a Multi-Unit Development Agreement ("MUD Agreement") to develop an agreed upon number of Bambū shoppes within a specific geographic territory according to a development schedule ("Development Schedule"). The form of MUD Agreement you will sign is attached as Exhibit B to this Disclosure Document. Your obligation to develop and operate franchises may be satisfied by you or by an entity owned by you or your owners ("Approved Affiliate"). For each Bambū shoppe developed under the MUD Agreement, you will sign a separate franchise agreement, which may be different than the form of Franchise Agreement attached to this Disclosure Document.
Source: Item 1 — The Franchisor and any Parents, Predecessors, and Affiliates (FDD pages 9–11)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if a franchisee enters into a Multi-Unit Development Agreement, the franchise agreement signed for each Bambu shoppe developed under the agreement may differ from the standard Franchise Agreement attached to the Disclosure Document. This means that the terms and conditions outlined in the standard agreement might not be the same for franchisees who commit to opening multiple locations.
This is a fairly common practice in franchising, as Multi-Unit Development Agreements often involve different considerations than single-unit franchises. These considerations can include adjusted fees, development schedules, and territory rights, which may necessitate modifications to the standard franchise agreement. The specific differences in the franchise agreement will likely be detailed in the Multi-Unit Development Agreement itself.
Prospective franchisees considering a Multi-Unit Development Agreement with Bambu should carefully review both the MUD Agreement and the franchise agreement they will be required to sign for each location. Understanding the specific differences between the standard franchise agreement and the one used for multi-unit development is crucial for making an informed investment decision. It would be prudent to consult with a franchise attorney to fully understand the implications of these differences.