Under what conditions can Bambu terminate the MUD Agreement with the Franchisee?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
prior written notice to all parties, provided that Franchisee will not be entitled to a refund of any fees paid hereunder under any circumstances.
- 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
affiliates and Franchisee or any of Franchisee's affiliates and fails to cure such default within the time periods specified in such other agreements.
- 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.
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 the agreement's terms or conditions. This includes failing to open and maintain the number of stores required by the Development Schedule. Bambu must provide 30 days written notice for the franchisee to correct the default.
Bambu can also terminate the MUD Agreement if the franchisee defaults on any Franchise Agreements related to the MUD Agreement or any other agreements between Bambu (or its affiliates) and the franchisee (or their affiliates). In this case, the franchisee has a specific cure period as outlined in those other agreements to remedy the default.
If the MUD Agreement is terminated solely because the franchisee failed to meet the Development Schedule, 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 and all other agreements between Bambu and the franchisee.