What does Bambu consider to be cash equivalents?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. if the consideration or manner of payment offered by a proposed transferee is such that Bambu may not reasonably be required to furnish the same, then Bambu may purchase the interest which is proposed to be sold for the reasonable cash equivalent.
If the parties cannot agree within a reasonable time on the cash consideration, such fair market value will be determined by three independent appraisers who collectively will conduct one appraisal.
Bambu will appoint one appraiser, Franchisee will appoint one appraiser and those appraisers will appoint the third appraiser.
Bambu and Franchisee will select their respective appraisers within 15 days after Bambu notifies Franchisee that Bambu is exercising the right of first refusal under this Section 17.4.
The two appraisers will appoint the third appraiser within 15 days after the date on which the last of the appointed appraisers is appointed.
Bambu and Franchisee will each bear the cost of their own appraiser and share equally the fees and expenses of the third appraiser.
Bambu and Franchisee will instruct the three appraisers to complete the appraisal within 30 days after the third
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to the 2025 Bambu FDD, in the event that a franchisee proposes to transfer their rights, interest, or assets, Bambu has a right of first refusal to purchase those assets under the same terms and conditions. However, if the consideration offered by the proposed transferee is not something Bambu can reasonably match, Bambu can purchase the interest for a "reasonable cash equivalent."
If Bambu exercises its right of first refusal but the parties cannot agree on the cash consideration for the purchase, the fair market value will be determined by three independent appraisers. Bambu will appoint one appraiser, the franchisee will appoint another, and those two appraisers will then appoint the third appraiser to conduct a single appraisal.
Bambu and the franchisee are each responsible for the cost of their own appraiser, and they will equally share the fees and expenses of the third appraiser. The three appraisers are instructed to complete the appraisal within 30 days after the third appraiser is appointed. This process ensures a fair valuation if Bambu decides to exercise its right of first refusal but cannot agree with the franchisee on the initial cash consideration.