When does the Bambu MUD Agreement term end?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1. The term of this MUD Agreement shall commence as of the date of execution hereof and shall end on the earlier of (1) the date the last Franchise Agreement is executed to open the maximum number of shoppes set forth in the Addendum, or (2) the date of the deadline set forth in the Development Schedule for Franchisee to execute the Franchise Agreement for the last of its shoppes to be developed under this MUD Agreement. After expiration of the term, or earlier termination of this MUD Agreement as provided below, Bambu shall have the right to establish, or license any other party to establish shoppes anywhere within the Development Area; provided, however, that Franchisee's Protected Area as defined in the Franchise Agreements executed hereunder will remain in effect for the term of the Franchise Agreements, unless sooner terminated.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the term of the Multi-Unit Development (MUD) Agreement begins on the date it is executed. The agreement concludes on the earlier of two dates: either when the last Franchise Agreement is executed to open the maximum number of stores outlined in the Addendum, or on the deadline specified in the Development Schedule for the franchisee to execute the Franchise Agreement for the final store to be developed under the MUD Agreement.
After the MUD Agreement expires or is terminated, Bambu retains the right to establish or license others to establish stores within the Development Area. However, the franchisee's Protected Area, as defined in the individual Franchise Agreements, remains in effect for the duration of those Franchise Agreements, unless they are terminated sooner.
This means that a prospective Bambu franchisee's development rights under the MUD agreement are tied to their adherence to the development schedule. Failure to meet these deadlines could result in the termination of the MUD agreement, potentially impacting their ability to open the agreed-upon number of locations. However, any existing franchise agreements will remain valid unless the MUD agreement is terminated due to other defaults.