factual

Under what state's laws will the Bambu franchise agreement be governed and construed?

Bambu Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 8.1. Disputes/Governing Law. The parties agree that any dispute between the parties arising out of the terms of this MUD Agreement shall be governed by the applicable provisions of the Franchise Agreement executed concurrently herewith including the arbitration, choice of law, and venue provisions, which terms and conditions are by this reference incorporated herein. This MUD Agreement shall be governed by and construed in accordance with the laws of the State of Colorado.

Source: Item 23 — Receipts (FDD pages 52–209)

What This Means (2025 FDD)

According to the 2025 Bambu FDD, the Multi-Unit Development (MUD) Agreement shall be governed by and construed in accordance with the laws of the State of Colorado. The franchise agreement executed concurrently with the MUD Agreement includes the arbitration, choice of law, and venue provisions.

However, the FDD also includes riders for several states (Illinois, Indiana, Virginia, Washington, Rhode Island, New York, and Hawaii) that modify the standard franchise agreement to comply with state-specific franchise laws. For example, the Illinois Rider states that Illinois law governs the Franchise Agreement for franchisees in Illinois. Similarly, the Rhode Island addendum indicates that any provision restricting jurisdiction or venue to a forum outside of Rhode Island or requiring the application of another state's laws is void with respect to claims enforceable under the Rhode Island Franchise Investment Act.

These state-specific riders and addenda suggest that while Bambu intends to enforce the choice-of-law provisions in its standard franchise agreement, those provisions may be superseded by state franchise laws depending on where the franchisee is located. A prospective franchisee should carefully review the rider or addendum (if any) for their state to understand which laws will govern their franchise agreement and how their rights may be affected.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.