Under what circumstances can Bambu terminate the Bambu MUD Agreement if the Franchisee defaults?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.3. Termination by Bambu. Franchisee shall be deemed in default and this MUD Agreement may be terminated by Bambu, at its option, in the following circumstances:
- (i) Franchisee defaults on any term or condition of this MUD Agreement, including without limitation, the failure to open and maintain the number of shoppes required by the Development Schedule, and fails to cure such default after 30 days written notice to Franchisee; or
- (ii) Franchisee is in default under any of the Franchise Agreements executed in furtherance of this MUD Agreement or any other agreement between Bambu or any of Bambu's
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu can terminate the Multi-Unit Development (MUD) Agreement if the franchisee defaults on certain terms and conditions. Specifically, Bambu may terminate the MUD agreement if the franchisee fails to open and maintain the number of stores required by the Development Schedule, and does not correct this failure within 30 days of receiving written notice.
Additionally, Bambu can terminate the MUD Agreement if the franchisee is in default under any of the individual Franchise Agreements executed under the MUD Agreement, or any other agreement between Bambu (or its affiliates) and the franchisee (or its affiliates). In this case, the franchisee must fail to cure the default within the time periods specified in those other agreements.
It is important to note that if the MUD Agreement is terminated solely because the franchisee failed to meet the Development Schedule, any existing Franchise Agreements remain in effect. 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, as well as any other agreements between Bambu and the franchisee.