Is Bambu's consent required for a franchisee to transfer their franchise agreement?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
ection 15.9 above, with no duty on the part of Bambu to account to Franchisee with respect to the use and exploitation of the same.
17. TRANSFER
- 17.1 Transfer by Franchisee. The franchise granted herein is personal to Franchisee and, except as stated below, Franchisee shall not transfer, assign, sub-franchise or convey this Agreement or any interest hereunder nor purport to do so without Bambu's prior written consent which consent will not be unreasonably withheld. Franchisee acknowledges that prior to approving any transfer, Bambu may impose reasonable conditions on Franchisee and its purported transferee in addition to those conditions listed in Section 17.2. As used in this Agreement, the term "transfer" shall mean and include the voluntary, involuntary, direct or indirect assignment, sale, gift or other disposition by Franchisee (or any of its owners) of any interest in: (1) this Agreement; (2) the ownership of Franchisee; or (3) the shoppe or any assets of the shoppe. 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.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, franchisees need to obtain written consent from Bambu to transfer their franchise agreement. This requirement is detailed in Section 17.1, which states that franchisees cannot transfer, assign, sub-franchise, or convey the agreement without Bambu's prior written consent. This consent will not be unreasonably withheld. The term 'transfer' includes any voluntary, involuntary, direct, or indirect assignment, sale, gift, or other disposition of any interest in the agreement, the ownership of the franchisee, or the shoppe and its assets.
Bambu may impose reasonable conditions on the franchisee and the proposed transferee before approving any transfer, in addition to the conditions listed in Section 17.2. These conditions ensure that the new franchisee meets Bambu's standards and that the transfer does not negatively impact the Bambu brand.
Section 17.2 outlines several pre-conditions that a franchisee must meet before a transfer can be approved. These include ensuring the shoppe has been open for at least 30 days, payment of all outstanding amounts owed to Bambu, and the proposed transferee completing the required training program. Additionally, the transferee must sign a new Franchise Agreement and related documents, provide written notice to Bambu 30 days prior to the transfer, and meet Bambu's qualifications for new franchisees.
Bambu has 30 days from the date of the written notice to either approve or disapprove the proposed transfer, as stated in Section 17.3. The proposed transferee will be evaluated based on the same criteria used for new franchisees, and they will receive any pre-transfer disclosures required by law. This process ensures that any new franchisee aligns with Bambu's standards and is fully informed about the franchise opportunity.