Besides the standard transfer fee, what additional fee must a Bambu franchisee pay for every undeveloped franchise right when transferring?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
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 Agre
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, a franchisee who wishes to transfer their rights must pay a standard transfer fee, as well as an additional fee of $7,500 for every undeveloped franchise right for which no Franchise Agreement has been executed. This fee is in addition to the standard transfer fee.
This means that if a Bambu franchisee has secured the rights to develop multiple locations but has not yet signed a Franchise Agreement for each location, they will be required to pay $7,500 for each of those undeveloped locations in addition to the standard transfer fee if they decide to transfer their rights to another party. This could represent a significant cost for franchisees who have development rights for multiple locations.
This fee likely serves to compensate Bambu for the loss of potential future franchise fees and to ensure that the new franchisee is committed to developing the remaining locations. Prospective franchisees should carefully consider the implications of this fee when entering into a multi-unit development agreement with Bambu, as transferring undeveloped rights could be costly.