Under what circumstances would a Rider to the Nondisclosure and Noncompetition Agreement supersede the terms of the standard Nondisclosure and Noncompetition Agreement for a Bambu franchise?

According to Bambu's 2025 Franchise Disclosure Document, a Rider to the Nondisclosure and Noncompetition Agreement for Specific States or Countries will supersede the terms of the standard Nondisclosure and Noncompetition Agreement if it is designated as an "Applicable Rider." This means that if a specific Rider is checked and incorporated into the agreement between Bambu Franchising LLC and the franchisee, its terms will take precedence over any conflicting terms in the standard Nondisclosure and Noncompetition Agreement.

For a prospective Bambu franchisee, this is important because the standard non-disclosure and non-competition agreement may be altered or superseded by state-specific or country-specific riders. These riders are designed to address specific legal requirements or restrictions in certain jurisdictions, which may differ from the standard terms. Therefore, franchisees need to carefully review any applicable riders to understand their rights and obligations fully.

For example, the FDD includes a Washington Rider that addresses the enforceability of noncompetition covenants based on employee earnings, and restrictions on soliciting or hiring employees. Similarly, there is a Canada Rider that addresses restrictions on soliciting or hiring each other's employees. These riders modify the standard agreement to comply with local laws. It is important for a franchisee to understand that the terms of the Nondisclosure and Noncompetition Agreement can be different based on the state or country where they are opening a franchise.