What is the consequence of failing to transfer the Bambu franchise interest within the specified timeframe after the franchisee's death or disability?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon the death or permanent disability of Franchisee (or the individual controlling Franchisee entity), the executor, administrator, conservator, guardian or other personal representative of such person shall transfer Franchisee's interest in this Agreement or such interest in Franchisee entity to a third party approved by Bambu.
Such disposition of this Agreement or such interest (including, without limitation, transfer by bequest or inheritance) shall be completed within a reasonable time, not to exceed 180 days from the date of death or permanent disability, and shall be subject to all terms and conditions applicable to transfers contained in this Article 17.
Failure to transfer the interest in this Agreement or such interest in Franchisee entity within said period of time shall constitute a breach of this Agreement.
For the purposes hereof, the term "permanent disability" shall mean a mental or physical disability, impairment or condition that is reasonably expected to prevent or actually does prevent Franchisee or the owner of a controlling interest in Franchisee entity from supervising the management and operation of the Bambū shoppe for a period of 120 days from the onset of such disability, impairment or condition.
In any event, there shall at all times be a Bambū Certified Team Leader designated to be responsible for the management of the shoppe on a full-time basis who has complied with all of Bambu's training requirements, regardless of any death or disability covered in this Section.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, if the franchisee (or the individual controlling the franchisee entity) dies or becomes permanently disabled, their interest in the Franchise Agreement must be transferred to a Bambu-approved third party. This transfer must occur within a reasonable time, not exceeding 180 days from the date of death or permanent disability.
Failure to transfer the Bambu franchise interest within the 180-day timeframe constitutes a breach of the Franchise Agreement. This means that the franchisor, Bambu, could take action against the franchisee's estate or representative for violating the terms of the agreement. Such actions could include terminating the franchise agreement, which would result in the loss of the franchise and its associated revenue.
To ensure the smooth operation of the Bambu shop during such events, there must always be a Bambu Certified Team Leader responsible for the shop's management on a full-time basis, regardless of any death or disability. This individual must meet all of Bambu's training requirements. This requirement aims to maintain the standards and operational consistency of the franchise even when the franchisee is unable to manage the business.