What criteria does Bambu use to evaluate a proposed transferee of a Bambu franchise?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
Franchisee acknowledges that the proposed transferee shall be evaluated for approval by Bambu based on the same criteria as is then currently being used to assess new franchisees of Bambu and that such proposed transferee shall be provided, if appropriate, with such pre-transfer disclosures as may be required by state or federal law.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the company evaluates a proposed transferee of a franchise based on the same criteria it uses to assess new franchisees. To initiate a transfer, the franchisee must provide written notice to Bambu at least 30 days before the proposed transfer date. This notice must include the transferee's name and address, copies of all agreements related to the transfer, the transferee's application to become a franchisee, and any other information Bambu reasonably requests.
The information provided by the franchisee must be sufficient for Bambu to assess the proposed transferee's business experience, aptitude, and financial qualifications. Bambu must determine that the transferee meets these qualifications. This ensures that the new franchisee has the skills and resources necessary to successfully operate the Bambu franchise.
Prospective franchisees should note that Bambu has 30 days from the date of the written notice to approve or disapprove the proposed transfer. This allows Bambu to thoroughly evaluate the transferee's qualifications and ensure they meet the company's standards. If a transfer is approved, the transferee may be required to sign the then-current form of MUD Agreement with potentially different terms and conditions.