Does the Bambu MUD Agreement allow for modification through conduct?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
chisee. To the maximum extent permitted by law, Franchisee waives any such claims against such Nonparty Affiliates.
24. MISCELLANEOUS PROVISIONS
24.1 Modification.
a. This Agreement may only be modified upon execution of a written agreement between Bambu and Franchisee or, at Bambu's option, upon notice of the approval of a Super-Majority as defined
in Section 24.1.b below. Unless prohibited by law or waived by Bambu, Franchisee must provide a general release of any and all claims against Bambu if Franchisee requests and Bambu consents to modify any provisions of this Agreement after it has been signed.
- b. This Agreement may be modified by Bambu at its option whenever Bambu and a Super-Majority, as hereinafter defined, of franchisees and licensees of Bambu agree to any such modification. A "Super-Majority" of Bambu franchisees or licensees shall consist of the owners of at least 75 percent of all Bambū shoppe franchises and licenses, or, if only a portion of Bambū shoppes are affected by the modification, at least 75 percent of those Bambū shoppe franchises and licenses affected by the modification. Whenever a modification is approved by a Super-Majority, Bambu may elect to treat the modification as effective to all franchisees and licensees or the applicable group thereof, including Franchisee, to the same extent and in the same manner as if the modification was unanimously approved by them, and regardless of whether Franchisee may or may not desire to be bound by the modification. Bambu shall provide Franchisee with notice of any modification to this Agreement based on a Super-Majority approval at least 30 days prior to the date such modification is to be effective. By signing this Agreement, Franchisee appoints the officers of Bambu as its attorneys in fact with irrevocable power and authority to execute any such modification so approved.
- c. Franchisee acknowledges that Bambu may modify its standards and specifications and operating, marketing, and other policies and procedures set forth in the FRC Materials unilaterally under any conditions and to the extent in which Bambu, in its sole determination, deems necessary or desirable. These modifications may include regional and local variations. Franchisee shall be bound by and incorporate into its shoppe these modifications. Franchisee may be obligated to invest additional capital in Franchisee's shoppe and incur higher operating costs based on these periodic modifications.
- d.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the MUD (Multi-Unit Development) Agreement specifies how it can be modified. The agreement can only be modified through a written agreement signed by both Bambu and the franchisee. Alternatively, Bambu has the option to modify the agreement with notice of approval from a super-majority of franchisees and licensees, defined as owners of at least 75% of all Bambu shoppe franchises and licenses, or 75% of those affected by the modification.
If a franchisee requests a modification and Bambu consents, the franchisee must provide a general release of any and all claims against Bambu, unless prohibited by law or waived by Bambu. When a modification is approved by a super-majority, Bambu can elect to make the modification effective for all franchisees and licensees, regardless of whether an individual franchisee desires to be bound by it. Bambu must provide the franchisee with at least 30 days' notice before any modification based on a super-majority approval becomes effective. By signing the agreement, the franchisee appoints the officers of Bambu as their attorneys in fact with the power to execute any such approved modification.
Bambu also retains the right to unilaterally modify its standards, specifications, and operating, marketing, and other policies and procedures set forth in the FRC (Franchise Resource Center) Materials, including regional and local variations, which the franchisee is bound to incorporate into their shoppe. The agreement explicitly states that it may not be changed orally, emphasizing the need for written consent from Bambu for any waiver, change, modification, extension, or discharge. This requirement for written modification is a common practice in franchising to ensure clarity and prevent disputes based on informal agreements.