Are the rights granted in the Bambu MUD Agreement exclusive?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
y renew the Franchise Agreements or enter into successor Franchise Agreements for such Existing Shoppes.
- 1.2. Franchisor's Reservation of Rights. Franchisee acknowledges that the rights granted in this MUD Agreement are non-exclusive and that Bambu, for itself and its affiliates, successors and assigns, reserves the rights, among others:
- (a) to use the Marks to identify any type of products and services, promotional and marketing efforts or related items, and to identify products and services distributed or otherwise made available through alternative channels of distribution (other than Bambū shoppes), at any
location, and on any terms and conditions as Bambu determines including, but not limited to, sales through channels such as wholesale or retail distribution, Internet marketing and distribution, social media marketing, mail order, catalog, retail store display or made-to-order or pre-packaged product sales in grocery stores, at any location;
- (b) to use and license the use of different proprietary marks or methods (for example, if Bambu acquires or is acquired by another business that provides products and services similar to or the same as a shoppe) in connection with the sale of products and services similar to or the same as those which Franchisee sells, whether in alternative channels of distribution or through owning, developing, operating or franchising stores which are the same as, or similar to, or different from Bambū shoppes, at any location, and on any terms and conditions as determined by Bambu;
- (c) To use and to license others to use the Marks and Bambū system to establish restaurants similar to Bambū shoppes that service walkup and drive-thru customers but without indoor seating (a "Drive-Thru shoppe"), at any location, including in Franchisee's Development Area; provided that if Bambu desires to open or permit someone else to open a Drive-Thru shoppe in Franchisee's Development Area, Bambu will give Franchisee a right of first refusal to participate in the Drive-Thru shoppe with either partial or whole ownership thereof;
- (d) to use and license others to use the Marks and Bambū system to establish shoppes at Institutional Facilities at any location. "Institutional Facilities" means outlets that serve primarily customers located within a captive facility, such as parks charging admission, stadiums, amusement parks, theaters, art centers, airports, transportation facilities, department stores, business and industrial complexes, museums, educational facilities, hospitals, military complexes, buyer club facilities, casinos, resorts, hotels, and convention centers. Bambu, on behalf of itself, its affiliates and designees, reserves the right to contract with Institutional Facilities to develop and operate shoppes within these facilities; and
- (e) to engage in any other activities not expressly prohibited by this MUD Agreement.
- 1.3. Franchise Agreement First Shoppe Developed.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the rights granted in the MUD (Multi-Unit Development) Agreement are non-exclusive. Bambu retains several rights for itself, its affiliates, successors, and assigns. Specifically, Bambu can use its marks to identify any type of products and services, promotional and marketing efforts, or related items through alternative channels of distribution other than Bambu shoppes. These alternative channels include wholesale, retail distribution, internet marketing, social media, mail order, catalogs, retail store displays, and pre-packaged product sales in grocery stores.
Bambu also reserves the right to use and license different proprietary marks or methods if it acquires or is acquired by another business that offers similar products and services. This includes the ability to operate or franchise stores that are the same as, similar to, or different from Bambu shoppes. Additionally, Bambu can use and license others to use the Bambu system to establish restaurants similar to Bambu shoppes that service walk-up and drive-thru customers without indoor seating (Drive-Thru shoppes), and to establish shoppes at Institutional Facilities such as parks, stadiums, airports, department stores, educational facilities and hospitals.
Furthermore, Bambu retains the right to engage in any other activities not expressly prohibited by the MUD Agreement. If Bambu desires to open or allow someone else to open a Drive-Thru shoppe in the franchisee's Development Area, Bambu will give the franchisee a right of first refusal to participate in the Drive-Thru shoppe with either partial or whole ownership. These reservations mean that while a franchisee is granted development rights within a specific area, Bambu can still operate or franchise other concepts and channels, potentially creating competition within the same market.
Prospective franchisees should be aware that these non-exclusive rights could impact their market share and revenue potential. It is important to discuss with Bambu the specific plans for alternative distribution channels and other store formats within the Development Area to fully understand the competitive landscape. Franchisees should also inquire about the conditions under which Bambu would exercise its right of first refusal for Drive-Thru shoppes to assess potential opportunities for expansion and diversification within their territory.