What article outlines the provisions for selling or transferring a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "transfer" shall also mean and include any change in Franchisee resulting from a divorce, insolvency, corporate or partnership dissolution proceeding, merger, change of control, those transfers described in Section 17.5, by operation of law or, in the event of the death of Franchisee, or an owner of Franchisee by will, declaration of or transfer in trust or under the laws of intestate succession.
- 17.2 Pre-Conditions to Franchisee's Transfer.
Franchisee shall not transfer its rights under this Agreement or any interest in it, or any part or portion of any business entity that owns it or all or a substantial portion of the assets of the Bambū shoppe, unless: (1) the shoppe has already opened for business and has been operating for at least 30 days; and (2) Franchisee obtains Bambu's written consent and complies with all of the following requirements:
- a.
Payment of all amounts due and owing pursuant to this Agreement by Franchisee to Bambu or its affiliates or to third parties holding a security interest in any asset of the franchised business and Franchisee is otherwise in full compliance with this Agreement.
- b.
Agreement by the proposed transferee to satisfactorily complete the Training Program described in this Agreement, which training may be completed by the transferee either prior to or immediately after assignment of this Agreement.
- c.
Execution of a Franchise Agreement (for the same type of franchise as granted by this Agreement or an equivalent type then offered as determined by Bambu) and any ancillary documents, such as the Guaranty and Assumption of Franchisee's Obligations and Nondisclosure and Noncompetition Agreement, in a form then currently offered and required by Bambu, which shall supersede this Agreement in all respects.
If a new Franchise Agreement is signed, the terms thereof may differ substantially from the terms of this Agreement; provided, however, the transferee will not be required to pay any additional initial franchise fee.
- d.
Provision by Franchisee of written notice to Bambu 30 days prior to the proposed effective date of the transfer, such notice to contain information reasonably detailed to enable Bambu to evaluate the terms and conditions of the proposed transfer, an which at a minimum includes a written offer from the proposed transferee.
- e.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Article 17 details the provisions for the transfer of a franchise. Specifically, Section 17.2 outlines the preconditions that a franchisee must meet before transferring their rights, including obtaining Bambu's written consent.
These preconditions include ensuring all payments due to Bambu or its affiliates are settled, and the franchisee is in full compliance with the Franchise Agreement. The proposed transferee must also complete the Training Program satisfactorily. Additionally, the transferee is required to execute a new Franchise Agreement, which may have substantially different terms from the original agreement, although they won't have to pay an additional initial franchise fee.
Furthermore, the franchisee must provide Bambu with a 30-day written notice prior to the proposed transfer date, including detailed information about the transfer terms and a written offer from the proposed transferee. This comprehensive process ensures that Bambu maintains control over who operates its franchises and that any new franchisee meets the brand's standards and obligations.