After termination of the Bambu MUD agreement, is the franchisee still subject to non-disclosure and non-compete agreements?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
s MUD Agreement and all other agreements between Bambu and Franchisee or any of Franchisee's affiliates may, at Bambu's sole option, be terminated.
- 4.5. Post-Termination Obligations. In the event of termination or expiration of this MUD Agreement for any reason, Franchisee shall not be entitled to any refund of any portion of the fees paid hereunder. Franchisee shall remain subject to the provisions of Article 6 of this MUD Agreement regarding nondisclosure and covenants not to compete, in addition to the terms and conditions of any and all Franchise Agreements executed in furtherance of this MUD Agreement which have not also been terminated or expired. No right or remedy herein conferred upon or reserved by Bambu is exclusive of any other right or remedy provided or permitted by law or equity.
5. ASSIGNMENT
- 5.1. Assignment by Bambu. Bambu may transfer or assign its rights under this MUD Agreement at any time upon notice to Franchisee, provided that Bambu has fulfilled its obligations hereunder or has made adequate provisions therefor.
- 5.2. Assignment by Franchisee. Because the rights granted herein are personal to Franchisee, Franchisee shall not transfer, assign or convey this MUD Agreement or any interest hereunder without Bambu's prior written consent which consent shall not be unreasonably withheld if Franchisee complies with the transfer provisions of the Franchise Agreement most recently executed by Bambu and Franchisee, which provisions shall be deemed to be incorporated herein by reference. Bambu reserves the right to require the transferee to sign the then-current form of MUD Agreement with materially different terms and conditions that may be negotiated between the parties depending on the circumstances of the transfer.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees are still subject to non-disclosure and non-compete agreements even after the termination of the Multi-Unit Development (MUD) Agreement. Specifically, Article 6 of the MUD Agreement states that the franchisee remains bound by these obligations. This means that even if the MUD Agreement ends, the franchisee must continue to protect Bambu's confidential information and adhere to the non-compete terms outlined in the agreement.
This obligation extends not only to the franchisee but also to their Approved Affiliates, as well as their officers, partners, directors, managers, agents, or employees who have completed Bambu's training programs or had access to the Resource Center Materials. It also applies to the beneficial owners of a five percent or greater interest in the franchisee or an Approved Affiliate and their respective immediate families. This broad scope ensures that a wide range of individuals connected to the franchise are held accountable for maintaining confidentiality and avoiding competitive activities.
The restrictive covenants are those set forth in the Franchise Agreement executed concurrently with the MUD Agreement, as well as any separate nondisclosure and noncompetition agreements signed by the franchisee, their affiliates, or their personnel. These covenants are incorporated by reference into the MUD Agreement, making them an integral part of the franchisee's post-termination obligations. This comprehensive approach underscores the importance Bambu places on protecting its business interests and proprietary information, even after the formal business relationship has ended.