What law governs the MUD Agreement for Bambu franchisees?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
t it. This indemnity shall continue in full force and effect subsequent to and notwithstanding the expiration or termination of this MUD Agreement.
8. MISCELLANEOUS
- 8.1. Disputes/Governing Law. The parties agree that any dispute between the parties arising out of the terms of this MUD Agreement shall be governed by the applicable provisions of the Franchise Agreement executed concurrently herewith including the arbitration, choice of law, and venue provisions, which terms and conditions are by this reference incorporated herein.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the governing law for the MUD (Multi-Unit Development) Agreement depends on the franchisee's location. Generally, the MUD Agreement is governed by and construed in accordance with the laws of the State of Colorado. This means that the standard terms of the agreement will be interpreted under Colorado law. However, there are exceptions to this rule.
For franchisees in Illinois, Illinois law governs the MUD Agreement, overriding the general provision that Colorado law applies. This is explicitly stated in the Illinois Rider to the MUD Agreement. Additionally, any provision in the franchise agreement that designates jurisdiction and venue in a forum outside of Illinois is void, although arbitration may still take place outside of the state. This ensures that Illinois franchisees have the benefit of their local laws and legal procedures.
It is important for prospective Bambu franchisees to understand which state's laws will govern their MUD Agreement, as this can significantly impact their rights and obligations. Franchisees should carefully review any state-specific riders or addenda to the agreement to determine if there are any local law requirements that apply to them.