What interest rate applies to amounts due in a dispute under the Bambu MUD Agreement?

According to Bambu's 2025 Franchise Disclosure Document, in the event of any dispute arising from the MUD Agreement, the non-prevailing party is responsible for paying the prevailing party all amounts due, damages, costs, and expenses, including reasonable attorneys' fees. In addition to these payments, the non-prevailing party must also pay interest on these amounts. The interest rate applied will be the highest rate allowable by law, accruing from the date of default.

This means that if a Bambu franchisee has a dispute with Bambu under the MUD Agreement and does not win the dispute, the franchisee will be responsible for not only the original amounts in dispute but also any associated damages, costs, attorney fees, and interest on those amounts. The interest rate will be the highest rate legally permitted, which could be a substantial amount depending on the jurisdiction and the length of time the dispute lasts.

It is important for a prospective Bambu franchisee to understand the potential financial implications of disputes under the MUD Agreement. Franchisees should consult with a legal professional to fully understand their rights and obligations under the agreement and to assess the potential risks associated with disputes. Understanding the financial responsibilities, including the interest rate, can help franchisees make informed decisions and manage their business effectively.