What does Bambu consider to be a 'transfer' of the franchise agreement?

According to Bambu's 2025 Franchise Disclosure Document, a 'transfer' of the franchise agreement encompasses a broad range of scenarios. Bambu defines a transfer as any voluntary, involuntary, direct, or indirect assignment, sale, gift, or other disposition by the franchisee (or any of its owners) of any interest in the franchise agreement itself, the ownership of the franchisee entity, or the shoppe and its assets. This definition is important for prospective franchisees to understand, as it clarifies the circumstances under which they would need to seek Bambu's approval and potentially pay a transfer fee.

Specifically, the term 'transfer' includes changes resulting from events like divorce, insolvency, corporate or partnership dissolution, merger, or change of control. It also covers transfers that occur by operation of law or in the event of the franchisee's death, whether through a will, declaration of trust, or intestate succession. This broad definition ensures that Bambu maintains control over who operates its franchises, even in unforeseen circumstances.

Bambu also outlines 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, obtaining Bambu's written consent, and fulfilling all outstanding financial obligations to Bambu and its affiliates. The proposed transferee must also agree to complete Bambu's training program and execute a new Franchise Agreement, which may have different terms than the original agreement. These conditions highlight Bambu's commitment to maintaining brand standards and ensuring that any new franchisee is adequately prepared to operate the business.