What obligations does the Franchisee remain subject to after termination or expiration of the Bambu MUD Agreement?

According to Bambu's 2025 Franchise Disclosure Document, in the event of termination or expiration of the Multi-Unit Development (MUD) Agreement, the franchisee has specific ongoing obligations. The franchisee is not entitled to any refund of fees paid under the MUD Agreement. Furthermore, the franchisee remains subject to the nondisclosure and non-compete covenants outlined in Article 6 of the MUD Agreement. These obligations continue alongside the terms and conditions of any Franchise Agreements executed in furtherance of the MUD Agreement that have not also been terminated or expired. Bambu retains all rights and remedies available by law or equity.

Specifically, Article 6 likely contains provisions preventing the franchisee from disclosing confidential information or competing with Bambu for a certain period and within a specific geographic area after the MUD Agreement ends. The continuation of these obligations aims to protect Bambu's proprietary information and market position, even after the formal business relationship concludes. The franchisee should carefully review Article 6 to fully understand the scope and duration of these restrictions.

This section of the FDD makes it clear that termination or expiration of the MUD agreement does not automatically release the franchisee from all responsibilities. The franchisee needs to be aware that certain key obligations, particularly those related to confidentiality and non-competition, will survive the end of the agreement. Additionally, any existing franchise agreements remain in effect unless specifically terminated. This ensures that Bambu's interests are protected and that the franchisee cannot exploit confidential information or unfairly compete using the knowledge gained during the franchise relationship.