Are there related agreements in addition to the Franchise Agreement that I should review regarding renewal, termination, transfer, and dispute resolution for a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
This table lists certain important provisions of the Franchise Agreement and related agreements. You should read these provisions in the Franchise Agreement and related agreements attached to this Disclosure Document.
| Provision | Section in Franchise Agreement or Multi-Unit Development Agreement | Summary | |
|---|---|---|---|
| (d) | Termination by franchisee | Section 4.2 of MUDA | For the Franchise Agreement: Not applicable. For the MUD Agreement: You may terminate for any reason upon 60 days' notice. (Subject to state law.) |
| (f) | Termination by franchisor with cause | Sections 19.1 and 19.2 of FA; Sections 4.3 and 4.4 of MUDA | We can terminate only if you commit any one of several listed violations. |
| (i) | Franchisee's obligations on termination/non-renewal | Sections 19.3 and 19.4 of FA; Section 4.5 of MUDA | Pay outstanding amounts; pay an amount equal to the monthly Royalty Fees due over the remaining term under the Franchise Agreement if terminated due to your default; de-identification of shoppe; return of confidential information; covenant not to compete (see also o. and r. below); others. |
| (j) | Assignment of contract by franchisor | Section 17.6 of FA; Section 5.1 of MUDA | No restriction on our right to assign. |
| (k) | "Transfer" by franchisee – defined | Section 17.1 of FA; Section 5.2 of MUDA | Includes transfer of franchise agreement or shoppe, any change in ownership of franchisee entity, or the transfer of the assets of the shoppe. |
| (l) | Franchisor approval of transfer by franchisee | Sections 17.3 and 17.8 of FA; Section 5.2 of MUDA | We have the right to approve all transfers, we may not unreasonably withhold our consent. We have the right to approve any public or private offering. |
| (u) | Dispute resolution by arbitration or mediation | Article 23 of FA; Section 8.1 of MUDA | Arbitration or litigation in Denver, Colorado (subject to state law). |
| (v) | Choice of forum | Article 23 of FA; Section 8.1 of MUDA | Arbitration or litigation in Denver, Colorado. You and we agree to waive our rights to a jury. (Subject to applicable state law.) |
| (w) | Choice of law | Section 23.5 of FA; Section 8.1 of MUDA | Colorado law applies. The Colorado Consumer Protection Act does not apply. (Subject to applicable state law.) |
Source: Item 17 — (FDD pages 44–46)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Item 17 indicates that in addition to the Franchise Agreement, a Multi-Unit Development Agreement (MUDA) may also be relevant to the terms of renewal, termination, transfer, and dispute resolution. The FDD states that a table lists important provisions of both the Franchise Agreement and related agreements, suggesting that the MUDA contains provisions impacting these key aspects of the franchise relationship.
Specifically, the MUDA outlines terms for termination by the franchisee, which allows termination for any reason with 60 days' notice, subject to state law. It also details the franchisor's termination rights with cause, mirroring the Franchise Agreement in this regard. Furthermore, the MUDA addresses franchisee obligations upon termination or non-renewal and conditions for franchisor approval of a transfer.
The dispute resolution, choice of forum, and choice of law provisions also extend to the MUDA, stipulating arbitration or litigation in Denver, Colorado, under Colorado law. Prospective franchisees should carefully review both the Franchise Agreement and the Multi-Unit Development Agreement to fully understand their rights and obligations regarding renewal, termination, transfer, and dispute resolution, as the terms in each agreement may have different implications depending on the franchisee's specific circumstances.