What constitutes an unauthorized transfer of the Bambu franchise that could lead to termination?

According to Bambu's 2025 Franchise Disclosure Document, an unauthorized transfer of the franchise can lead to termination if a franchisee sells, transfers, or assigns the franchise, an interest in the franchise, the Franchise Agreement, the Bambū shoppe, or a substantial portion of the shoppe's assets without complying with the transfer provisions outlined in Article 17 of the agreement.

Article 17 specifies conditions that a franchisee must meet before transferring their rights. These preconditions include obtaining Bambu's written consent, ensuring the shoppe has been open for at least 30 days, and fulfilling several requirements. The franchisee must settle all outstanding payments to Bambu or its affiliates and demonstrate full compliance with the Franchise Agreement. The proposed transferee must also satisfactorily complete Bambu's Training Program and execute a new Franchise Agreement, along with any required ancillary documents like a Guaranty and Assumption of Franchisee's Obligations and Nondisclosure and Noncompetition Agreement.

Additionally, the franchisee must provide Bambu with a 30-day written notice containing detailed information about the proposed transfer, including a written offer from the transferee. The proposed transferee must meet Bambu's standards for business experience, aptitude, and financial qualifications. The franchisee must also execute a general release of claims against Bambu and pay a transfer fee as specified in Attachment I. Failure to comply with all these provisions constitutes an unauthorized transfer and can result in the termination of the Franchise Agreement.