Under the Bambu franchise agreement, what section addresses non-competition covenants?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
n about your obligations in these agreements and in other items of this Disclosure Document.
| Obligation | Section in Agreements | Disclosure Document Item |
|---|---|---|
| ( |
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 28–38)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the non-competition covenants within the franchise agreement are addressed in Article 21 of the Franchise Agreement (FA) and Article 6 of the Multi-Unit Development Agreement (MUDA). This information is also referenced in Item 17 of the same document.
For a prospective franchisee, this means that the terms and conditions regarding what you can and cannot do, both during the franchise term and after it ends, are detailed in these specific sections. These covenants typically restrict a franchisee from engaging in similar businesses or activities that would compete with the Bambu franchise, both within a certain geographic area and for a specified period of time.
Understanding these non-competition covenants is crucial because they can significantly impact your future business opportunities. It is important to carefully review Article 21 of the FA and Article 6 of the MUDA, along with Item 17, to fully understand the scope and limitations of these restrictions. A prospective franchisee should seek legal counsel to fully understand the implications of these clauses before signing the franchise agreement.