Under what circumstances would a Rider to the Multi-Unit Development Agreement supersede the terms of the MUD Agreement with Bambu?

According to Bambu's 2025 Franchise Disclosure Document, a Rider to the Multi-Unit Development Agreement (MUD Agreement) for Specific States will supersede the terms of the MUD Agreement if it is designated as an "Applicable Rider" and there is a conflict between the terms of the Rider and the terms of the MUD Agreement. This means that certain state-specific regulations or modifications to the standard MUD Agreement will take precedence over the original agreement's terms.

For a prospective Bambu franchisee, this is important because the standard MUD Agreement may be altered by state-specific Riders to comply with local laws or regulations. These Riders are included as a condition to registration or use in certain jurisdictions. The Illinois Rider, for example, addresses issues such as governing law, venue, franchisee rights upon termination, and the deferral of the Development Fee until Bambu fulfills its initial obligations for the franchisee's first store due to Bambu's financial condition.

It is important to note that Bambu retains the right to contest the validity, enforceability, or applicability of these Rider provisions in any action related to the MUD Agreement. Therefore, franchisees should carefully review any Riders applicable to their specific state and understand how these Riders modify the standard MUD Agreement. Franchisees should seek legal counsel to fully understand their rights and obligations under both the MUD Agreement and any applicable Riders.