What is Bambu's requirement regarding the franchisee's compliance with the Development Schedule?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.1. Development Schedule. Franchisee agrees to develop the following number of shoppes in the Development Area, including the shoppe to be developed under the Franchise Agreement executed concurrently with this MUD Agreement, in accordance with development schedule set forth in the Addendum (the "Development Schedule"). Franchisee agrees that time is of the essence with respect to compliance with the Development Schedule, payment of the balance of the initial franchise fees under Section 2.1(b) above and any and all other obligations to be performed by Franchisee hereunder. Further, Franchisee shall continuously maintain in operation at least the number of shoppes set forth on the Development Schedule.
- 3.2. Subsequent Franchise Agreements. The parties agree that a separate Franchise Agreement shall be executed by the parties to this MUD Agreement for each shoppe to be developed under this MUD Agreement. Franchisee will exercise its right for development of each shoppe by giving Bambu written notice of its intention to develop such shoppe at least 90 days in advance of the deadline set forth in the Development Schedule for executing each applicable Franchise Agreement. The Franchise Agreement for the second and subsequent shoppes will be executed by the deadline set forth in the Development Schedule. Franchisee's failure to execute any additional Franchise Agreements or its default in any term of such Franchise Agreements may, at the option of Bambu, be deemed a default under this MUD Agreement and shall entitle Bambu to terminate this MUD Agreement as further provided in Article 4 below. Each Franchise Agreement to be executed by Franchisee for each shoppe to
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees must adhere to the development schedule outlined in the addendum to the Multi-Unit Development (MUD) Agreement. This schedule specifies the number of Bambu shoppes the franchisee is obligated to develop within their designated Development Area, including the initial shoppe under the Franchise Agreement.
Bambu emphasizes that strict adherence to the Development Schedule is critical, stating that "time is of the essence." This requirement extends not only to meeting the deadlines for shoppe development but also to the timely payment of initial franchise fees and the fulfillment of all other obligations under the MUD Agreement. Franchisees must also continuously operate at least the number of shoppes specified in the Development Schedule.
Furthermore, for each additional shoppe to be developed under the MUD Agreement, a separate Franchise Agreement is required. The franchisee must notify Bambu in writing of their intention to develop a shoppe at least 90 days before the deadline for executing the relevant Franchise Agreement, as stipulated in the Development Schedule. Failure to meet these deadlines or defaulting on any terms of the Franchise Agreements may be considered a default under the MUD Agreement, potentially leading to termination of the agreement by Bambu.