Does the definition of 'transfer' for a Bambu franchise include transfers resulting from the death of the franchisee?
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.
- 17.7 Franchisee's Death or Disability.
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 definition of "transfer" includes changes in the franchisee resulting from death. Specifically, if a franchisee or an owner of the franchisee dies, the transfer of the franchise can occur through a will, declaration of trust, or intestate succession. This means that the rights and obligations of the franchise agreement can be passed on to heirs or beneficiaries, subject to Bambu's approval.
Bambu requires that upon the death or permanent disability of the franchisee (or the individual controlling the franchisee entity), the executor, administrator, conservator, guardian, or other personal representative must transfer the franchisee's interest to a third party approved by Bambu. This transfer must be completed within a reasonable time, not exceeding 180 days from the date of death or permanent disability, and is subject to all the standard transfer conditions outlined in the franchise agreement.
Failure to transfer the interest within the specified 180-day period constitutes a breach of the agreement. This provision ensures that the Bambu franchise continues to operate under approved management even in unforeseen circumstances. The FDD also stipulates that regardless of any death or disability, a Bambu Certified Team Leader must always be designated to manage the shoppe on a full-time basis, ensuring compliance with Bambu's training requirements and operational standards.
Prospective franchisees should understand that while the franchise can be transferred upon death, the transfer is not automatic and is subject to Bambu's approval. This is a common practice in franchising to maintain brand consistency and operational standards. Franchisees should discuss with their legal and financial advisors how to structure their business and estate plans to facilitate a smooth transfer in the event of death or disability, ensuring compliance with Bambu's requirements.