Under what circumstances does the Bambu MUD Agreement term end?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.1. The term of this MUD Agreement shall commence as of the date of execution hereof and shall end on the earlier of (1) the date the last Franchise Agreement is executed to open the maximum number of shoppes set forth in the Addendum, or (2) the date of the deadline set forth in the Development Schedule for Franchisee to execute the Franchise Agreement for the last of its shoppes to be developed under this MUD Agreement. After expiration of the term, or earlier termination of this MUD Agreement as provided below, Bambu shall have the right to establish, or license any other party to establish shoppes anywhere within the Development Area; provided, however, that Franchisee's Protected Area as defined in the Franchise Agreements executed hereunder will remain in effect for the term of the Franchise Agreements, unless sooner terminated.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the Multi-Unit Development (MUD) Agreement term begins on the execution date and concludes based on two possible scenarios. The first is when the last Franchise Agreement is executed to open the maximum number of Bambu shoppes as detailed in the Addendum. The second is on the deadline date specified in the Development Schedule for the franchisee to execute the Franchise Agreement for the final shoppe to be developed under the MUD Agreement.
Upon the expiration or earlier termination of the MUD Agreement, Bambu retains the right to establish or license others to establish shoppes within the Development Area. However, the franchisee's Protected Area, as defined in the individual Franchise Agreements, remains effective for the duration of those agreements, unless they are terminated sooner.
It is important to note that the termination of the MUD Agreement does not automatically terminate the Franchise Agreements already in effect, especially if the termination is solely due to failure to meet the Development Schedule. In such cases, the existing Franchise Agreements remain valid. However, if the MUD Agreement is terminated due to any other default, Bambu has the option to terminate all Franchise Agreements executed under the MUD Agreement.