What obligations does the Franchisee have 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 MUD (Multi-Unit Development) Agreement, the franchisee is not entitled to any refund of fees paid under the agreement. The franchisee remains subject to the nondisclosure and non-compete covenants outlined in Article 6 of the MUD Agreement. This obligation extends to the terms and conditions of any and all Franchise Agreements executed to further the MUD Agreement, provided those Franchise Agreements have not also been terminated or expired. Bambu retains all rights and remedies available by law or equity.

This means that even after the MUD Agreement ends, a franchisee must still protect Bambu's confidential information and adhere to the non-compete terms, which typically restrict the franchisee from operating a similar business within a certain geographic area for a specified time. The continuation of obligations under existing Franchise Agreements provides a level of security for Bambu, ensuring that the development of existing locations continues uninterrupted, even if the broader development agreement is terminated.

For a prospective franchisee, this highlights the importance of understanding the terms of both the MUD Agreement and the individual Franchise Agreements. While the MUD Agreement might be terminated, the obligations under the Franchise Agreements for already-established locations can persist. This could impact the franchisee's future business decisions, especially if they wish to exit the Bambu system entirely. It is important to note that the specifics of the non-disclosure and non-compete clauses are found in Article 6 of the MUD Agreement, which is not provided in this excerpt.