What constitutes a breach of the Bambu Franchise Agreement if the franchisee dies?
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, the death of a franchisee triggers specific requirements regarding the transfer of the franchise interest. If the franchisee (or the individual controlling the franchisee entity) dies or becomes permanently disabled, their representative (executor, administrator, etc.) must transfer the franchisee's interest in the Franchise Agreement to a third party approved by Bambu.
The transfer must be completed within a reasonable timeframe, specifically within 180 days from the date of death or permanent disability. This transfer is subject to all the standard terms and conditions applicable to transfers outlined in the Franchise Agreement.
Failure to complete the transfer of the franchise interest within the 180-day period constitutes a breach of the Franchise Agreement. Bambu also requires that a Bambu Certified Team Leader is always designated to manage the shoppe full-time, regardless of the franchisee's death or disability, ensuring continuity of operations.