What ancillary documents might a transferee of a Bambu franchise be required to execute?

According to Bambu's 2025 Franchise Disclosure Document, a transferee of a Bambu franchise may be required to execute certain ancillary documents. Specifically, the transferee must sign a Franchise Agreement (for the same type of franchise or an equivalent type then offered by Bambu) and any additional documents that Bambu requires at the time of transfer. These ancillary documents may include a Guaranty and Assumption of Franchisee's Obligations and a Nondisclosure and Noncompetition Agreement. The new Franchise Agreement will supersede the original agreement in all respects.

It is important to note that the terms of the new Franchise Agreement may differ substantially from the original agreement. However, the transferee will not be required to pay an additional initial franchise fee. This suggests that while the core opportunity remains the same, certain operational or financial aspects could be subject to change based on Bambu's current standards at the time of the transfer.

Prospective franchisees should carefully review the then-current forms of all agreements and ancillary documents to fully understand their obligations and rights. It is also important to note that the transferee must satisfactorily complete the Training Program, which can be done either before or after the assignment of the Franchise Agreement. This ensures that the new franchisee is adequately prepared to operate the Bambu franchise according to Bambu's standards.