Under what conditions can Bambu terminate all Franchise Agreements executed under the MUD Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- 4.4. Continued Effectiveness of Franchise Agreements. If this MUD Agreement is terminated due solely to a failure by Franchisee to meet the Development Schedule, Bambu and Franchisee agree that such termination shall not constitute a default or result in a termination of any Franchise Agreements executed between Franchisee and Bambu in effect as of the date of termination of this MUD Agreement. In that case, those Franchise Agreements shall continue in full force and effect notwithstanding the termination of this MUD Agreement. Bambu and Franchisee agree that any statements to the contrary in the Franchise Agreements executed by them, including any cross-default and cross-termination provisions, will be inapplicable in the situation of a termination of this MUD Agreement based solely on Franchisee's failure to meet the Development Schedule. If this MUD Agreement is terminated due to any other default under Section 4.3 above, all Franchise Agreements executed in furtherance of this MUD Agreement and all other agreements between Bambu and Franchisee or any of Franchisee's affiliates may, at Bambu's sole option, be terminated.
- 4.5. Post-Termination Obligations. In the event of termination or expiration of this MUD Agreement for any reason, Franchisee shall not be entitled to any refund of any portion of the fees paid hereunder. Franchisee shall remain subject to the provisions of Article 6 of this MUD Agreement regarding nondisclosure and covenants not to compete, in addition to the terms and conditions of any and all Franchise Agreements executed in furtherance of this MUD Agreement which have not also been terminated or expired. No right or remedy herein conferred upon or reserved by Bambu is exclusive of any other right or remedy provided or permitted by law or equity.
5. ASSIGNMENT
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu has the option to terminate all Franchise Agreements executed under the MUD Agreement if the MUD Agreement is terminated due to reasons other than the franchisee's failure to meet the Development Schedule.
Specifically, if the franchisee defaults on any term or condition of the MUD Agreement, including failing to open and maintain the required number of stores as per the Development Schedule, and does not cure the default within 30 days of written notice, Bambu can terminate the MUD Agreement. Additionally, if the franchisee defaults on any Franchise Agreements executed under the MUD Agreement, or any other agreement with Bambu or its affiliates, and fails to resolve the default within the specified timeframes, Bambu can also terminate the MUD Agreement.
In the event that the MUD Agreement is terminated for any reason other than failure to meet the Development Schedule, Bambu has the sole option to terminate all Franchise Agreements executed under the MUD Agreement. This means that the franchisee could lose all of their Bambu franchises if the MUD agreement is terminated due to a breach of its terms.