Does the Bambu MUD Agreement require arbitration?

According to Bambu's 2025 Franchise Disclosure Document, the MUD Agreement incorporates the arbitration provisions of the Franchise Agreement. Specifically, any dispute arising from the MUD Agreement will be subject to the arbitration, choice of law, and venue provisions outlined in the Franchise Agreement executed concurrently. This means that if there's a disagreement related to the MUD Agreement, the process for resolving it, including where and how it will be handled, will follow the rules detailed in the Franchise Agreement.

This incorporation is significant for prospective Bambu franchisees because it centralizes dispute resolution under the terms of the Franchise Agreement. Franchisees should carefully review the Franchise Agreement's arbitration clause to understand the specific procedures, costs, and location of any potential arbitration proceedings. The MUD Agreement itself is governed by the laws of Colorado.

For franchisees in Illinois, the Illinois Rider to the MUD Agreement stipulates that while the agreement is governed by Illinois law, it also states that a franchise agreement may provide for arbitration to take place outside of Illinois, despite any provision designating jurisdiction and venue outside of the state being void. This clarification ensures that Illinois franchisees understand their rights and the legal framework governing the franchise relationship within the state, particularly regarding dispute resolution.

Furthermore, in the event of a dispute, the non-prevailing party may be responsible for covering the prevailing party's legal costs, including attorney's fees, in any legal action, arbitration, mediation, or other proceeding. This provision adds another layer of financial consideration for franchisees when evaluating the potential risks and costs associated with disputes arising from the MUD Agreement.