Besides the standard transfer fee, what additional fee is required by Bambu 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, in addition to the standard transfer fee, a franchisee must pay $7,500 for every undeveloped franchise right when transferring the MUD (Multi-Unit Development) Agreement. This fee applies to each franchise that has not yet had a Franchise Agreement executed.
This additional fee could significantly increase the cost of transferring a MUD agreement, especially if the franchisee has secured rights to develop multiple locations but has not yet opened them. It is important to note that this fee is separate from the standard transfer fee associated with the franchise agreement itself.
Prospective franchisees should carefully consider the implications of this fee when entering into a MUD agreement with Bambu. They should evaluate their development plans and timelines to minimize the number of undeveloped franchise rights they hold if they decide to transfer the agreement. Understanding this fee is crucial for financial planning and decision-making related to the potential transfer of development rights.