Can Bambu assign the Bambu Franchise Agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
emedy herein conferred upon or reserved by Bambu is exclusive of any other right or remedy provided or permitted by law or equity.
5. ASSIGNMENT
- 5.1. Assignment by Bambu. Bambu may transfer or assign its rights under this MUD Agreement at any time upon notice to Franchisee, provided that Bambu has fulfilled its obligations hereunder or has made adequate provisions therefor.
- 5.2. Assignment by Franchisee. Because the rights granted herein are personal to Franchisee, Franchisee shall not transfer, assign or convey this MUD Agreement or any interest hereunder without Bambu's prior written consent which consent shall not be unreasonably withheld if Franchisee complies with the transfer provisions of the Franchise Agreement most recently executed by Bambu and Franchisee, which provisions shall be deemed to be incorporated herein by reference. Bambu reserves the right to require the transferee to sign the then-current form of MUD Agreement with materially different terms and conditions that may be negotiated between the parties depending on the circumstances of the transfer. Franchisee is prohibited from granting a subfranchise hereunder. As used in this MUD Agreement, the term "transfer" shall have the meaning set forth in the Franchise Agreement most recently signed by Bambu and Franchisee. In addition to any conditions contained in this MUD Agreement, the conditions for Bambu's approval of any transfer shall be the same as the conditions contained in the Franchise Agreement most recently executed by Bambu and Franchisee, which provisions shall be deemed to be incorporated herein by reference.
- 5.3. Transfer Fee. In the event of any proposed sale, transfer or assignment by Franchisee as described herein, Franchisee or the proposed transferee shall pay to Bambu the standard transfer fee for each franchise to be transferred, as governed by the applicable Franchise Agreement executed pursuant to this MUD Agreement, plus $7,500 for every undeveloped franchise right for which no Franchise Agreement has been executed.
5.4. Bambu Right of First Refusal.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, Bambu can transfer or assign its rights under the Multi-Unit Development (MUD) Agreement at any time. Bambu must provide notice to the franchisee, ensuring that it has either fulfilled its obligations under the agreement or has made adequate provisions to do so. This means that a prospective Bambu franchisee should be aware that the franchisor could transfer the agreement to another party.
Conversely, the franchisee's ability to assign the MUD Agreement is restricted. The document states that because the rights granted to the franchisee are personal, the franchisee cannot transfer, assign, or convey the MUD Agreement or any interest without Bambu's prior written consent. However, Bambu's consent cannot be unreasonably withheld if the franchisee complies with the transfer provisions of the Franchise Agreement most recently executed by Bambu and the franchisee.
Bambu also reserves the right to require the transferee to sign the then-current form of MUD Agreement, which may contain materially different terms and conditions negotiated between the parties based on the transfer's circumstances. Furthermore, the franchisee is prohibited from granting a subfranchise under the MUD Agreement. In the event of a proposed sale, transfer, or assignment by the franchisee, they must grant Bambu a 30-day right of first refusal to purchase the rights or assets on the same terms and conditions as the initial Franchise Agreement.