In the Bambu Multi-Unit Development Agreement Addendum, what section number in the MUD Agreement references the Development Area?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
| 1. The number of Bambū shoppes to be developed in the Development Area referenced in Section 1.1 of the MUD Agreement (including the first Bambū shoppe to be opened pursuant to the MUD Agreement) shall be: |
|---|
| 2. |
| The Development Area, as referred to in Section 1.1 of the MUD Agreement, is |
| described below by geographic boundaries and on the attached map and shall consist of the following zip |
| or postal codes or areas: |
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Section 1.1 of the Multi-Unit Development Agreement (MUD Agreement) is referenced in the Addendum regarding the Development Area. Specifically, the addendum outlines that Bambu grants the franchisee the right to develop and establish a number of stores within a defined geographic area, using Bambu's trademarks and system. This geographic area is referred to as the "Development Area".
The addendum also clarifies that Bambu will not establish or license others to establish stores within the Development Area, with an exception for existing franchise agreements already in effect at the time of the MUD Agreement. These existing locations, termed "Existing Shoppes," are allowed to continue operations, and Bambu retains the right to renew or enter into successor agreements for them.
This section is important for prospective franchisees as it defines the scope of their exclusive development rights and acknowledges any pre-existing Bambu locations within that area. Understanding these existing agreements and the specific geographic boundaries is crucial for assessing the potential market and competition within the Development Area.