Does the Bambu MUD agreement supersede the franchise agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ATTACHMENT B TO BAMBU FRANCHISING LLC MULTI-UNIT DEVELOPMENT AGREEMENT
RIDERS TO MULTI-UNIT DEVELOPMENT AGREEMENT FOR SPECIFIC STATES
If any one or more of the following Riders to the Multi-Unit Development Agreement ("MUD Agreement") for Specific States ("Riders") is checked as an "Applicable Rider" below, then that Rider shall be incorporated into the MUD Agreement entered into by Bambu Franchising LLC and the undersigned Franchisee. To the extent any terms of an Applicable Rider conflict with the terms of the MUD Agreement, the terms of the Rider shall supersede the terms of the MUD Agreement.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Multi-Unit Development (MUD) Agreement can be superseded by specific state riders. Attachment B of the MUD agreement outlines that if any of the listed state-specific riders are marked as 'Applicable Rider,' the terms of that rider will take precedence over any conflicting terms in the general MUD Agreement. This means that franchisees need to carefully review the included riders for their specific state to understand how those regulations might modify the standard MUD Agreement terms.
This is particularly important for franchisees in states with strong franchise protection laws, such as Illinois, where specific riders are included. For example, the Illinois rider stipulates that certain provisions, such as the deferral of the development fee until Bambu fulfills its initial obligations and the franchisee commences business, supersede the standard MUD Agreement. These riders are designed to ensure compliance with local laws and protect the franchisee's rights within that state.
Therefore, while the MUD Agreement sets the general framework for multi-unit development, franchisees must be aware that the state-specific riders can alter or override certain aspects of the agreement to comply with local regulations and provide additional protections. It is crucial for prospective franchisees to thoroughly review all applicable riders in conjunction with the MUD Agreement to fully understand their rights and obligations.