Does the definition of 'transfer' for a Bambu franchise include transfers by operation of law?
Bambu Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "transfer" shall also mean and include any change in Franchisee resulting from a divorce, insolvency, corporate or partnership dissolution proceeding, merger, change of control, those transfers described in Section 17.5, by operation of law or, in the event of the death of Franchisee, or an owner of Franchisee by will, declaration of or transfer in trust or under the laws of intestate succession.
Source: Item 23 — Receipts (FDD pages 52–209)
What This Means (2025 FDD)
According to Bambu's 2025 Franchise Disclosure Document, the definition of 'transfer' includes transfers by operation of law. This means that if a change in the franchisee occurs due to circumstances dictated by law, it is considered a transfer under the franchise agreement.
Specifically, the Bambu FDD lists 'transfers by operation of law' as one type of event that constitutes a transfer. Other events that trigger a transfer include changes resulting from divorce, insolvency, corporate or partnership dissolution, merger, changes of control, or death of the franchisee or an owner of the franchisee. In the event of death, transfers can occur by will, declaration of trust, or intestate succession.
This definition is important because any transfer, whether voluntary or involuntary, is subject to Bambu's approval and certain conditions. These conditions are detailed in Section 17.2 of the franchise agreement and must be met before the transfer can be completed. This ensures that Bambu maintains control over who operates its franchises and that the brand's standards are upheld even when ownership changes due to legal or personal circumstances.