Does the Bambu MUD Agreement specify who is responsible for legal fees in a dispute?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.10.
Attorneys' Fees and Costs.
In the event of any dispute between the parties to this MUD Agreement, in addition to all other remedies, the non-prevailing party will pay the prevailing party all amounts due and all damages, costs and expenses, including reasonable attorneys' fees, incurred by the prevailing party in any legal action, arbitration, mediation, or other proceeding as a result of such dispute, plus interest at the highest rate allowable by law, accruing from the date of such default.
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 addresses responsibility for legal fees in the event of a dispute. Specifically, the agreement stipulates that the non-prevailing party in any dispute will be responsible for covering the prevailing party's costs and expenses.
This includes all amounts due, damages, costs, and expenses, including reasonable attorneys' fees. These fees can arise from any legal action, arbitration, mediation, or other proceeding resulting from the dispute. Additionally, the non-prevailing party is liable for interest on these amounts at the highest rate allowable by law, accruing from the date of default.
This clause in the Bambu MUD Agreement serves to protect the prevailing party by ensuring they are financially compensated for the expenses incurred while pursuing legal recourse. It also creates a disincentive for either party to engage in frivolous or unsubstantiated legal actions, as the risk of having to pay the opposing party's legal fees can be substantial. Prospective franchisees should carefully consider this provision and understand the potential financial implications of disputes arising under the MUD Agreement.